The U.S. credit card industry is losing $18 billion to preventable fraud, according to Brett King, CEO of Moven and best-selling technology futurist. The cause of this loss? The country is failing to adapt to European credit card standards.
King claims that American credit companies are not doing all they can to prevent massive credit card data breeches like recent incidents at Home Depot (HD) where 56 million customer credit and debit card accounts were compromised or Target’s (TGT) breach where 40 million card accounts were breached.
Chip and pin technology helps to prevent this fraud, and many credit card companies are slowly beginning to adopt this instead of magnetic stripes. King, however, believes credit card companies need to employ tokenization. “What we now realize is that the 16-digit number that you have on the front of your card is no longer securable. You can’t protect it,” says King. CVV’s and other security numbers on the back of the card are also failing to protect the consumer from fraud.