Breaches of sensitive consumer information at Target, Home Depot and other retailers have made it clear that not everyone connected to the card payments system adequately protects the personal information of their customers. Data breaches impose risks and costs on consumers, banks, the payments networks and our economy and these gaps should be filled as
soon as possible.
This two-week public awareness and education campaign will focus on the following timely themes: California banks’ ongoing investments in technology to make banking safer and more convenient for customers, including the deployment of chip-based credit cards; their ongoing commitment to protecting customers’ financial information and ensuring their customers are made whole financially in the event of a data breach at a retailer.
The Federal Financial Institutions Examination Council (FFEIC) has announced the release of a free cybersecurity assessment tool to “help institutions identify their risks and determine their cybersecurity preparedness.”
About Chip-based Payment Cards
A chip card is a standard-size credit card plastic with an embedded microprocessor chip that stores and protects cardholder data. If your card is lost, stolen or compromised in a data breach, the embedded microchip makes the card extremely difficult to counterfeit or copy.
Although chip cards are not common in the U.S., this technology has been used around the world for many years. Some U.S. banks already issue chip cards.
By law, regulation and the rules of the payments networks consumers have “zero liability” for unauthorized transactions – whether credit or debit card. Banks must swiftly reimburse customers, go beyond legal requirements to meet consumer needs, and are examined by regulatory agencies for compliance with legal requirements.
Fairer and More Effective Allocation of Breach Costs is Essential