With this week’s launch of a credit card fraud investigation at Staples and recent security breaches at Target, Home Depot and JPMorgan Chase, data security is becoming more and more important for companies who wish to retain and build trust with customers.
Data breach problems can often be attributed to the outdated transfer of information. The magstripe technology that most American credit card companies use today was originally developed in the 1960s — long before the establishment of the internet, online data storage and cyber hacks.
But several companies are beginning to use enhanced technology that incorporates a secure computer chip in the credit card. While this system has been in place in Europe for approximately ten years, it is just now being accepted in the U.S. (at a time when Apply Pay and Google Wallet are challenging the credit “card” system altogether).
In the article “Why the Heyday of Credit Card Fraud Is Almost Over,” author Kevin Poulsen presents a very clear recounting of the history of these two technology systems. All businesses that accept credit card payments should have working knowledge of this history because of its relevance today.