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A simple solution to credit card fraud, and why you won't see it any time soon

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Re: A simple solution to credit card fraud, and why you won't see it any time soon

#101

Post by antiterra »

davidu wrote: post #22

I've thought about this "problem" and decided there's no problem. You're solving a non-problem if you try to solve credit card fraud. The reason we don't deal with credit card fraud is that there are no consequences for being a victim, for any definition of victim. If the victims had consequences, then there would be demand for action. But there is none. Further, because there are no consequences, the cost to solve c…

CardSystems went out of business as a consequence of credit card fraud. Jonathan James killed himself swearing that he was innocent in relation to the TJX credit card breach. Perhaps orthogonal, but a consequence. Heartland Payment Systems went into pants-on-fire mode after their breach because they were very aware of the consequences CardSystems faced. Their strategy was to fess up and form an initiative for end-to-end payment encryption. They still have incurred over $150 million in costs and continue to face litigation 5 years after their breach. It could have been much worse, there's a per incident fine levied by Visa alone, outside of civil or statutory liability.

Maybe it 'isn't enough,' but that's not the same as no consequences.

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#102

Post by ctdonath »

I learned some things about how the world works that I couldn't figure out how to write about without coming across like a paranoid loon, and I couldn't get them far enough out of my head to write cogently about anything else.

Indeed.

I'd like to elaborate on my agreement but...I can't figure out how to write about without coming across like a paranoid loon. Methinks it has to do with approaching the half-century mark. "I've seen things you people wouldn't believe..."

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#104

Post by zimbatm »

Plastic card are a useless middleman and inherently insecure. You're inserting your card and password to somebody else's device !

You should be able to the account URI (based on IBAN) and the total, issue the payment order to your bank with your phone. The recipient gets notified by his bank in real-time that the payment has been made. Thank you, have a good day.

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#106

Post by saraid216 »

ctdonath wrote: post #99
saraid216 wrote: post #84

Earlier quoted context omitted.

If it's not ready to be read, why was it posted?

Long stories are not told entirely in the first chapter.

Because we buy books with only one chapter, these days?

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#107

Post by Zircom »

saraid216 wrote: post #106
ctdonath wrote: post #99

Earlier quoted context omitted.

Long stories are not told entirely in the first chapter.

Because we buy books with only one chapter, these days?

This isn't a book, and you aren't paying for it. Also, books are also assumed to be a finished product if they're being published, unlike a blog post that explicitly states it's the first of several. Not really an applicable analogy.

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#108

Post by mhp »

pbreit wrote: post #81
mhp wrote: post #36

Earlier quoted context omitted.

Updated: Apologies, I see now that the original comment specifically states there are no victims, period... even merchant victims. Incorrect. There are no serious consequences for the victims of credit card fraud (unless you consider the victims to be the merchants). When fraud takes place, the credit card company removes the bill from your statement. Then they take the money back that they sent to the merchant. The…

That's if the cardholder discovers the charge and if it hasn't already caused any problems (such as leading to bounced checks or inability to make an important payment). Your language is much to strong, especially since is wrong.

How can credit card fraud lead to bounced checks?

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#109

Post by damoncali »

mhp wrote: post #108
pbreit wrote: post #81

Earlier quoted context omitted.

That's if the cardholder discovers the charge and if it hasn't already caused any problems (such as leading to bounced checks or inability to make an important payment). Your language is much to strong, especially since is wrong.

How can credit card fraud lead to bounced checks?

If you have overdraft protection that goes to a card, and the card hits its limit, you can bounce a check.

Re: A simple solution to credit card fraud, and why you won't see it any time soon

#110

Post by jarrett »

azov wrote: post #59
jarrett wrote: post #14

To expand upon the author's idea, the problem is not just that credit card data is reusable, but that possession of credit card data amounts to permission to charge any arbitrary amount to it . Not legal permission, mind you, but permission in the sense that the infrastructure lets you do it, and you have to sort out the consequences through social/legal channels after the fact. Not only should future payment systems…

There are many use cases when pulling money is more convenient for the consumer. This is how most people pay their bills for example - they let providers deduct a different sum every month based on usage. There's a lot of value in being able to simply "set it and forget it"

Agreed. I think consumers should be allowed to explicitly enable that for certain merchants, and perhaps set some kind of limit on how much can be debited.

So you do this for a handful of companies (the electric company, the gas company, etc), and for everything else, you use the push model.

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