Credit Card Breaches Not Only Old Hat, But Also Declining
from the common-sense dept
In the wake of CardSystems outrageous 40 million customer data exposure and its seemingly quaint predecessors, the Monday morning quarterbacks are weighing to explain what we've all known for a while now: security breaches of this kind are nothing new, it's just that we're finding out about them more. In fact, the evidence shows that the incidence of credit card fraud is actually declining. Turns out that banks and merchants have been tackling this issue for some time, and actually reduced illegal credit card purchases by $100 million between 2003 and 2004. The industry still has a ways to go (after all, $788 million worth of fraud is still a serious problem), but at least there are signs of improvement. The same can't be said of identity theft, which the BusinessWeek story says is slightly on the rise and probably fueling the misperception about fraud in general. Of course, identity theft is a much more damaging crime with fewer solutions than a bunch of fake charges on your credit card. And, scammers don't need to swipe tons of data to cause widespread problems. Just a couple hundred thousand people's info will do.
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Breach numbers revised downwards
CNN coverage of the updated estimate [CNN.com]
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