Politicians Push for Stronger Credit Card Security
The number and magnitude of credit card hacks in America over the last few months has now prompted several lawmakers to push for stronger security systems.
Some are asking for a mandatory transition to chip-and-PIN cards, while others say the focus should be on cyber security. Either way, the urge for change is more prevalent now than ever.
“Is there any reason Congress shouldn’t mandate that payment card security standards use the most effective technology in the marketplace?” asked Georgia Democratic Representative David Scott. “I think this is a problem of soaring magnitude, and we’re going to be in trouble if we don’t get a handle on this.”
Edmund Mierzwinski of Public Interest Research Group agreed that Congress should mandate higher standards for credit card security, but he does not think they should specify the technology used for security. He also supports the need for an adjustment to laws that allow companies to hide information about data breaches from the public.
“Force companies that lost your information to tell us about it,” said Mierzwinski.
New York Democratic Representative Carolyn Maloney questioned how well the government was collecting information about cyber crime, especially on the international level.
“Who’s keeping the data on how big of a problem it is in the United States?” said Maloney. “It’s huge, in terms of national security, financial security and economic security of our country.”
No new regulations have been established at this time, but lawmakers are beginning to strive for tighter rules in one way or another. Payment processors, credit card companies, banks and retailers will need to prepare for changes to come.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.