Tired of hearing about data breaches and stolen credit card information? An executive at Fidelity National Information Solutions says you should expect more frequent attacks this year.
Criminals this year likely will increase attacks on businesses’ servers that record payment information, because the payment industry is issuing more credit cards embedded with EMV security chips.
Many merchants face an October deadline to switch point-of-sale terminals to accept the new technology.
“It absolutely will be the worst year of fraud because criminals know we are putting bars on the windows with EMV,” Legters said during a panel at the Consumer Bankers Association conference in Orlando. “They will exploit that channel as much as they can.”
The conference draws retail bankers from across the country to talk about emerging trends in the industry. It comes amid an environment that has banks rushing to adapt a decades-old business model to emerging technologies.
Start up payment companies have put a dent into banks’ customer numbers, as more consumers use technologies like peer-to-peer payments and mobile wallets to move money.
In addition, fears of fraud from bank-issued credit cards have tempered consumer sentiment toward traditional banks.
But advocates said on Tuesday that fear could be close to being controlled, if not eliminated. A MasterCard executive said Tuesday that the elimination of passwords, which should come with the adoption of EMV cards, will help in the battle against fraud.
“When you make a transaction unique, it’s not easy to replay,” said MasterCard’s Melanie Gluck. “It’s not worth going after to steal. So the fraudsters move on to something easier. It’s time to look at our personally identifiable information and make that less valuable.”
Last year, several high-profile merchants suffered a breach of digital security that led to customers’ personal data being exposed.
Sony, JP Morgan Chase and Jimmy John’s were just a few of the targets last year.
But Legters said banks could use that as a way to promote efforts to address the problems.
“Any consumer who has been touched by fraud, will gladly participate in fraud-prevention strategies,” he said.
“Anybody who hasn’t will be massively irritated that you’re making them do something else. That’s the challenge.”