U.S. lenders behind on safeguarding credit cards - WFXG FOX 54 - News Now

U.S. lenders behind on safeguarding credit cards

CHARLOTTE, NC (WBTV) -

First it was Target, where tens of millions of credit card numbers were stolen as people paid at the register.  Then, it was Neiman Marcus – a sophisticated data breach there too.

Now, Duke Energy Progress is warning customers in the Carolinas that their payment information may have been stolen. A Duke rep says a former contract employee could be to blame; that the company suspects he manually collected numbers. 

They do not expect Charlotte-area customers to be affected.

But it doesn't matter how high or low tech the culprit is when the safety mechanisms on your credit card are hopelessly outdated.

And most of them are in this country, according to retired FBI Assistant Director Chris Swecker. "Even South America is ahead of us," he says.

U.S. lenders are a decade behind in distributing the kind of secure cards common in other parts of the world - cards built with a computer chip that keeps a customer's account details invisible, even fluid. 

"They use what they call chip and pin, which is very hard to compromise," Swecker says. "The numbers are encrypted, they're dynamic, they change. So it's a very different system than the U.S."

Credit card theft in America was once the lowest in the world, according to experts, but it's doubled since chip cards spread through Europe, causing cyber thieves to turn their focus here. It could reportedly cost around $8 billion for U.S. creditors to update their technology.

"It is going to be an expensive proposition but they've made it through in Europe," says Swecker, "and they've eliminated a lot of fraud."

Copyright 2014 WBTV. All rights reserved.

  • NEWSMore>>

  • Police: 2 shot at Oklahoma restaurant; civilian kills gunman

    Police: 2 shot at Oklahoma restaurant; civilian kills gunman

    Friday, May 25 2018 1:02 AM EDT2018-05-25 05:02:34 GMT
    Friday, May 25 2018 3:04 AM EDT2018-05-25 07:04:51 GMT

    Police: Man armed with pistol shot and wounded two customers at Oklahoma City restaurant before being shot dead by handgun-carrying civilian in parking lot.

    More >>

    Police: Man armed with pistol shot and wounded two customers at Oklahoma City restaurant before being shot dead by handgun-carrying civilian in parking lot.

    More >>
  • Jury recommends $25M in Johnson & Johnson lawsuit

    Jury recommends $25M in Johnson & Johnson lawsuit

    Thursday, May 24 2018 4:42 PM EDT2018-05-24 20:42:21 GMT
    Friday, May 25 2018 2:56 AM EDT2018-05-25 06:56:28 GMT
    Johnson & Johnson said it's disappointed in the decision and will appeal. (Source: AP Photo/Tony Dejak)Johnson & Johnson said it's disappointed in the decision and will appeal. (Source: AP Photo/Tony Dejak)

    A Southern California jury has ordered Johnson & Johnson to pay more than $25 million to a woman who claimed in a lawsuit that she developed cancer by using the company's talc-based baby powder.

    More >>

    A Southern California jury has ordered Johnson & Johnson to pay more than $25 million to a woman who claimed in a lawsuit that she developed cancer by using the company's talc-based baby powder.

    More >>
  • Amazon: Echo device sent conversation to family's contact

    Amazon: Echo device sent conversation to family's contact

    Thursday, May 24 2018 5:52 PM EDT2018-05-24 21:52:19 GMT
    Friday, May 25 2018 2:56 AM EDT2018-05-25 06:56:13 GMT
    A woman says her Amazon device recorded a private conversation and sent it out to a random contact. (AP Photo/Mark Lennihan, File)A woman says her Amazon device recorded a private conversation and sent it out to a random contact. (AP Photo/Mark Lennihan, File)
    A woman says her Amazon device recorded a private conversation and sent it out to a random contact. (AP Photo/Mark Lennihan, File)A woman says her Amazon device recorded a private conversation and sent it out to a random contact. (AP Photo/Mark Lennihan, File)

    Amazon says an "unlikely" string of events prompted its Echo personal assistant device to record a Portland, Oregon, family's private conversation and then send the recording to an acquaintance in Seattle.

    More >>

    Amazon says an "unlikely" string of events prompted its Echo personal assistant device to record a Portland, Oregon, family's private conversation and then send the recording to an acquaintance in Seattle.

    More >>
Powered by Frankly