A spree of payment card fraud incidents at multiple retail locations in Seattle has prompted an investigation by law enforcement authorities. And security experts say these crimes can be expected to happen more frequently as credit/debit card fraud evolves.
Mobile payments are the future, and so is a migration to EMV chip and PIN. But the financial industry has quite a few more investments in technology upgrades it needs to make before any significant movement can be made.
The U.S. reliance on the magnetic stripe is having global consequences. European countries that have made the shift EMV say they are suffering from higher-than-ever incidents of ATM skimming because of the lingering mag stripe.
Richard Oliver says globalization and the advent of the Internet have been two of the most influential technology innovations to hit banking over the last three decades. But a number of outdated card technologies, such as the magnetic stripe, lingers and is exposing the payments industry to fraud.