People should use cash instead of credit or debit cards to prevent another breach from occurring in bank accounts across the U.S.
The recent data breach at Target has left banks scrambling to add additional security features to debit cards and aid in the prevention of further damage.
As 2013 came to an end thousands of Target’s customers were effected by a breach in their credit and debit machines. Hackers gained access to the account information of Target customers setting banks on immediate alert.
Consumers should take increased precautions with their finances until new methods are adopted.
Now we have to question how safe our credit and debit card information is when making purchases using payment methods that banks have assured us is safe, but are shown otherwise by situations like this.
Banks have an obligation to find and implement modern technologies such as Europay, MasterCard and Visa (EMV) chips.
According to chasepaymenttech.com, current magnetic stripe cards can be easily copied with inexpensive card reading devices and EMV chips ensure authenticity whenever the card is swiped.
According to Sarah Chandler of CNBC, credit and debit cards are outdated and are, “easy to outsmart” by thieves.
Sarah Chandler reports, “Some European nations moved to EMV chips as a result of legislation to combat fraud while emerging-market nations leapfrogged over the magstripe.”
Data analyst and financial fraud expert Avivah Litan claimed, “The U.S. is the last country to adopt the EMV chip and pin.”
People do not want live in paranoia and want to be assured that their savings will stay in their possession.
Debit cards are a direct link to a person’s money and that leaves their bank information and savings accounts susceptible to fraudulent spending by identity thieves.
With the obsolete features that banks are offering, we as consumers need to exercise a bit of accountability when it comes to the safety of our finances.
People need to begin developing complex passwords and taking note of unauthorized charges on their account in order to prevent hackers accessing their accounts.
A CSUSB student who wished to remain anonymous said, “I prefer to use cash because it can’t be tracked and it doesn’t provide access to my account.”
Chase recently imposed a restriction to its customers that would only allow them to withdraw only $100 in cash and spend $300 in purchases.
According to Nathaniel Popper of The New York Times, Citibank and JPMorgan Chase recognized that the problem was widespread and issued its entire clientele new debit cards.
CEO and Chairman of Target, Gregg Steinhafel, stated that they became aware of how much information was stolen during the breach.
Steinhafel sent out an email to Target customers apologizing and saying that Target would offer its customers free credit monitoring through Experian.
Companies should realize that their reputations are at stake in this and do what’s in their power to ensure that a breach as major as this does not happen again.
They should follow the actions of Target, Citibank, and JPMorgan Chase in making sure that the value of the information and data stolen does not increase and cause more damage then it already has.