Credit Card fraud is becoming a gigantic problem in the United States. It doesn’t take much to steal credit card information including a signature. All it takes is a simple smart phone scanner or even just a pen and piece of paper.
The Debt Collection industry has been aware of the problem for years because of the problems it creates for us and our clients. Fraud takes work to prove and proceeding against a consumer who has been the victim of fraud is an unacceptable nightmare.
For years, Credit Card companies tolerated a low level of fraud because it didn’t interfere with their profits, which were substantial. While fraud was only a small portion of all credit card transactions there was little to get credit card companies to make changes but, now, fraud is up and a major change is under way.
The Wall Street Journal reports that the United States will finally catch up with other countries in credit card technology.The new cards will be a force in dramatically reducing credit card fraud. Since the cost of the change is probably significantly lower than the current fraud losses, everybody, except the fraudulent card users, will win.
Debt collectors will no longer have to verify fraud because the new system is much safer. Consumers will not have to find out their credit has been compromised by a thief. Even if fraud did not lead to expenses for most consumers, the very thought of another person having their personal credit information was enough to keep them up at night.
Swipe and sign will become history as the new cards will be equipped with a new coded chip that is much harder to fake than a card number reader and a signature. If you are in possession of the credit card, nobody will be able to copy the chip. If somebody does copy your card number and signature, they won’t be able to use it if a card reader is involved.
The process has been going on for years. It was not used because our level of credit card fraud was far less than other countries but that is now changing as it is much more difficult for credit card identity to be stolen in countries with the new system.
While a card number can easily be copied the chip cannot. To replace the signature you will assign a pin number to your card and use that as confirmation if it is required. Since you will be able to change your pin number at any time, it provides an extra layer of protection against fraud.
Of course, this will not be the end. There is a constant arms race between those who want to steal using technology and those who want to prevent theft. This new process, however, should be good for a long time.
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ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.