Card Frauds Are Costing Much To The Payment Providers Of U.S

Card Frauds Are Costing Much To The Payment Providers Of U.S

29th January 2010

According to the report that was released by the Aite Group, the card frauds are costing the card payment industry of the United States an estimated amount of 8.6 billion dollars during a year. Although, this amount seems to be small as compared to the 2.1 trillion dollars of the total card volume of the U.S in a year, this area still remains to be a trouble for the industry. The analysts of Aite have said that he effective fight for the card frauds includes the triage and telepathy, which means that the appropriate battles should be picked for fighting while anticipating the next steps of the fraudsters which is based on the evolving landscape of the technology. In U.S. the card technologies are unlikely to be upgraded universally soon any time because of the implementation costs that are prohibitively high and also the loss of the interchange of the signature. By considering the speed as well as the cost efficiency for the deployment, the majorly practical way of mitigating the frauds of the cards today would be the ones that are based upon the end to end encryption methods.

Nick Holland, who is the senior analyst with the Aite Group as well as the author of the report, has said that the criminals must access to the deep seams of the data related to the cards. He said that cutting off the data`s supply through the deployment on the national level of the end to end encryption would greatly decrease the number of the counterfeit as well as the lost and stolen frauds of the cards.