The banking industry has an issue.
Over Christmas, as you must be aware by now, Target was the target of credit card thieves. This time it wasn’t directly the card readers like at Boarder books or the fault of any particular clearing house like Global Payments.
No one personally lost any money.
According to several news sources no one personally has lost money from the Target breach, just like the Saudi back breach where Hackers imprinted magnetic cards and pulled over 45 million from New York City ATM'S.
Where the deception begins.
The history of banks watching over our best interest is pitiful but extremely profitable. The deception begins with keeping your money through direct deposit. No the banks doesn’t want to save the cost of processing checks for many people they charge for that too. It actually wants as much time as can get with your money. Then if it does its job right it pays you nothing each month and keeps all the interest it gains.
Cash or Credit?
When you spend money using the credit or debit card the banks make money from the merchant. For years they had laws in place keeping merchants from charging more for using credit over cash so they just raised all of their prices and considered cash a bonus.
Of course cash is attractive to thieves, grocery stores and others will give money back on debit card purchases with no fee simply to reduce the amount of cash on hand.
How about the "New Chip" card?
So feel very little pity over the banking industry. But you might wonder why all of this activity over the last few years. Well we are last with the magic mag strip. That is the magnetic card technology. The newer card that is chip based has already been deployed throughout Europe and Asia. The New Chip card has already been compromised and really is no safer to use. It is just harder and more expensive to duplicate. In Europe and Asia they tell the public that the card id so secure they don’t need to cover theft people who use credit there do pay for their card being compromised.
So why more credit card theft in the US?
So since the rest of the world is running on chips, and the mag card is easier to duplicate, why do you think there is more activity here?
Least effort for most profit, Hmm just like the banks.
What's your opinion? Let us know in the comments below.