Australia to Phase out Credit Card Signature Verification
Australia is making an effort to cut down on credit card fraud by phasing out signature verifications.
Instead of signing for purchases on credit cards, all buyers will have to enter a personal identification number (PIN) to verify their identities.
“All Australian cardholders will need to know their credit and debit card PINs by August 2014,” said Nicole Pedersen-McKinnon, the spokeswoman for the PINwise campaign.
She encouraged Australians who have not registered PINs for their cards to do so well before the August deadline, as there may be issues with transactions after that.
“Chip has already cut counterfeit fraud losses on Australia cards by 44 per cent in the 12 months ending June 2013 and the move to PIN will help close the door on lost and stolen card fraud,” said Vipin Malra, the country manager for Visa in Australia told The Sydney Morning Herald.
Faking a signature is much easier to do than discovering someone’s four digit PIN.
There are still issues associated with PIN-only protection. Credit card skimmers and hacked databases can expose the PINs for millions of customers with select retailers.
The chip-and-PIN system utilized in Europe is considered to be the best option for credit card security at this time, but it will take a while for the rest of the world to adapt to it.