“…encrypting confidential information will “shrink the card data environment,” thus a minimal to zero possibility of public exposure of these data…”
To prevent fraud, she proposed three ways for the card industry:
- Widespread distribution of ‘smarter’ payment devices is one, where EVM (chip-and-pin) cards will be used
- Smarter networks to stem the cyber crime before or when it happens
- A cardholder authentication method such as two-factor authentication
“Visa’s global fraud rate recently hit a historic low – at just over 5 cents for every $100 transacted, down more than two-thirds from the levels of 20 years ago,” she added.
She urged the card industry to step up a bit more its security measures as most consumers believe cyber criminals are ahead of what’s already in place. According to Richey, 61% of consumers are of the opinion that the security measures of the card industry are one step behind cyber criminals.
Rather than keeping pace with cyber crime which would only exhaust resources, Richey proposed getting smarter as a better solution in combating fraud and protecting card data.
“We need to use all the intelligence we have at our disposal. I think that the opportunities to get smarter and fight fraud are all around us,” she said.
Richey, on the other hand, recognized the fact that these suggestions will be costly and will require tremendous resources.