credit-card-debtAccording to researchers at Cambridge University, EMV (Europay, Mastercard, Visa) users must be even more aware of all charges applied to their accounts than ever before. They claim that there is an integral defect in EMV’s chip-and-PIN validation protocol for debit and credit cards. Subsequently, a machine can be built to alter and obstruct communications between a card and a point-of-sale terminal. The reason for alarm is that

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credit-card-lcdVisa plans to release a new version of the credit card that will cut down online shopping fraud. This new credit card will be the same basic size and form, but with one huge difference – it will have a built in LCD and keypad on the back of the card. Powered by a built in battery that will last up to three years, these cards will work until they expire and there is no need to worry about charging them.

The way the that these new credit cards will prevent fraud is by making it necessary for the users to input their pin every time they make an online purchase. The card will then display a unique security code, which must be entered into the website, which will forward it to Visa’s servers, where the purchase will be approved.

“We hope this new card will help allay those fears, and give consumers more confidence when shopping online” said Sandra Alzetta of Visa.

The company hopes that the card will boost shopping over the Internet and it will be tested in Britain early next year by the company MBNA.

(Via DailyMail)

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cc_fraudVisa, MasterCard, and American Express are being criticized over allowing shady companies to charge their customers with hidden fees from misleading offers on hundreds of seemingly reputable e-commerce sites. Companies like Affinion, Vertrue, and Webloyalty pay websites  such as classmates.com, buy.com, and hotels.com millions of dollars to host misleading offers which they then use for their own profit. By the Senate’s count, these companies have already made over $1.5 billion from these types of scams. An example of this is classmates.com being payed $70 million for hosting such offers on their websites

People such as Harvard Business School Professor Ben Edelman and the Senate say that the credit card companies should be responsible for protecting their customers from these sorts of companies and should not even accept charges from these companies. But since the credit card companies make money from every transaction that takes place, they are satisfied with just making these shady companies give refunds back to angry customers, creating more business for themselves.

“They’re kind of caught in the middle… On the one hand, they make money from every transaction. And though the disputed transactions are a pain for them, they charge for their work cleaning up the disputes. So they’re ambivalent” says Harvard Business School professor Ben Edelman.

Ben Edelman argues that the best thing for the credit card companies to do in the long run is to block the shady deals from ever taking place in the first place and to keep their user’s trust and belief that using credit cards is safe.

(Via Forbes)

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nokia-phone-mastercard-logoWith all the hackers and security threats out there, credit card companies are breaking their backs trying to make their cards as secure as possible. MasterCard’s new layer of security, to be released in the first half of next year, uses a cell phone to authenticate your online transactions by asking for a password that is sent via SMS or generated on the spot by JAVA application. The goal is to improve the user’s protection against phishing schemes and man in the middle attacks. It will also make managing your credit card, and sending and receiving payments from your cell phone possible.

(Via PCWorld)

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creditcardsPoor Vanessa Ward knew something was wrong when she received a letter in the mail welcoming her to Wells Fargo for a credit line that she had been approved of. But there was a problem with that letter – and that was that she had never applied for that line of credit.

Vanessa isn’t sure how the credit card thieves got a hold of her card exactly, she says that it might have happened from a single pick-pocketing. Regardless, Vanessa was already aware that thieves had gone on a shopping spree using her credit. A surveillance video inside of a Safeway store shows the two suspected thieves on a $400 splurge, with purchases that include four prepaid Visa cards and three gift cards to Chili’s and Starbucks cards. Afterwords they spent another $200 at Nordstrom Rack, and later on they also went shopping at Standard TV and Appliance.

Vanessa has already closed all of her accounts and flagged her credit history. But she cant help but be concerned that other victims will fall prey to these thieves.

“I want them to go to jail. I’m sure I’m not the only ID that they have. So if we could put them in jail that would be awesome.”

If you are worried that your personal information may have been compromised, the FTC recommends immediately closing all accounts and changing all passwords. It’s important to contact your banks and credit card providers to alert them of the security breech. You can also place a temporary alert on your credit cards that will put your account activity on high alert, hopefully catching any wrongdoers before they’ve done too much damage.

(Via KGW)

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25_1544_20090804144839_credit-card-readerFor some, online shopping is the perfect way to indulge a passion without ever stepping foot into a store. Avoiding hawk-like sales clerks, being able to see all of your choices on a 20″ widescreen, no lines, and being able to take as much time as you want to obsess about what you may or may not need are all the benefits of shopping online. The other fringe benefits include stolen identities, credit card theft, and even worse- not getting that new pair of shoes. Fear not- with the SmartSwipe, you can shop away without wondering exactly where the numbers you type into your computer are ending up.

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