PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

From the Spurious Correlations Department: Rising Card Fraud Tied to RFID Chips

Mercator Advisory Group by Mercator Advisory Group
February 29, 2012
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Citing data the company says was released to it pursuant to a FOIA request, e-pickpocketing solution vendor Identity Stronghold announced today that there is a correlation between a rise in credit card fraud associated with identity theft and the growing issuance of contactless payment cards. Under FOIA, Identity Stronghold petitioned the Bureau of Justice Statistics (BJS) to release the card fraud data, which the Bureau collected under its National Crime Victimization Survey (NCVS). Identity Stronghold’s announcement indicated that the company found that there was a 31% increase in “cases of credit card theft” and a 37% rise in “the number of households victimized by more than one type of identity theft.” Though the period over which these percentages apply is unclear in the press release, the announcement goes on to say that BJS responded to the FOIA request from Identity Stronghold with “statistics only between the years 2005 and 2007.”

Worthy of note is BJS’s latest report in its Identity Theft Series, which publishes statistics collected in the NCVS through 2010 and can be found on the Bureau’s website.

PaymentsJournal proposes that a more rational correlation exists between data breaches and credit card fraud.

Excerpts from the (rather egregious) Identity Stronghold announcement:

[T]he increase in credit and debit card theft correlates with the introduction of Radio Frequency Identification (RFID) chipped credit and debit cards in 2005 and the subsequent increased rate of issuance. We predict any new data collected by the DOJ will reflect that the rate of credit card theft has increased at the same rate as the issuance of these new cards.

“The DOJ is behind the power-curve of keeping current data on credit card-related identity theft and financial crimes. Couple this with credit card companies misleading cardholders about the security of their personal identification, and it’s the ‘Wild West’ out there,” said Identity Stronghold CEO and founder Walt Augustinowicz.

By 2016, a projected one billion RFID-enabled credit and debit cards susceptible to electronic pickpocketing will be issued to cardholders, creating a target-rich environment for identity thieves setting their sights on consumer’s back pockets.

“I understand why credit card companies downplay the risks their products pose to cardholders and the boon they present to electronic pickpockets,” said Augustinowicz, “but I’m baffled by the idea that federal law enforcement agencies can take a more than 30-percent spike in credit card information thefts as their cue to stop collecting data and making current statistics available.”

“Meanwhile, new smartphone technology allows electronic pickpockets to scan and steal your credit card information simply by getting their phone close to your purse or wallet,” added Augustinowicz. “I’ll be working with local law enforcement agencies throughout 2012 to provide them with information and training on RFID security, electronic pickpocketing and how to educate citizens of this growing threat.”

Click here to read more.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    February 8, 2023
    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix