Retailers seeking to improve security system to combat cyber-attacks


February 4, 2014 | By RetailME Bureau

The National Retail Federation (NRF) has urged the Congress to take a comprehensive approach as it contemplates a national response to criminal cyber-attacks in which millions of consumers’ credit and debit card numbers were stolen. NRF said retailers a re willing to do their part to improve security, but that banks and card companies must also take major steps to shore up the current fraud-prone payments system. “When a criminal breach occurs in the payments system, all of the businesses that participate in that system and their shared customers are victimised,” says Mallory Duncan, NRF senior vice president and general counsel. “Rather than resort to blame and shame, the parties should work together to ensure that the data breach is remedied and steps are taken to prevent and mitigate future breaches,” he adds.

Duncan continues, “Retailers are taking the increasing incidence of payment card fraud very seriously. While we have every reason to want to see fraud reduced, but we have only a portion of the ability to make that happen. We did not design the [payments] system, we do not configure the cards and we do not issue the cards. We will work to effectively upgrade the system, but we cannot do it alone. This is a continuous battle against determined fraudsters. Every party in the payment system, financial institutions, networks, processors, retailers and consumers, has a role to play in reducing fraud.”

According to him, in the short term the banking industry needs to replace current cards that store consumer data on 1960s-era magnetic strips and have users sign their name with modern cards that encrypt data on an embedded microchip and require use of a secret Personal Identification Number (PIN). Instead, banks and card companies have pushed so-called EMV – Europay, MasterCard and Visa – proprietary cards that use a chip but remain open to fraud by allowing the use of a signature. Duncan believes replacement of easily forged signatures with a PIN and Chip card is essential to security.

In his testimony, Duncan urged the US to look beyond the Payment Card Industry’s (PCI) security standards and proposed EMV cards, and embrace a more secure and technologically-advanced payments system that is as innovative as it is competitive. In the longer term, Duncan said further improvements, such as point-to-point encryption of data, ‘tokenisation’ of transactions and mobile payments offer potential solutions to better protect consumers. Duncan also urged the Congress to pass the Cyber Intelligence Sharing and Protection Act, which would make it easier for the commercial sector to share information about cyber threats and ensure that cybercrimes are thoroughly investigated and prosecuted. He said NRF also wants Congress to replace the varying data breach notification laws currently on the books in 46 states and the District of Columbia with a single, uniform nationwide standard and bolster law enforcement agencies’ abilities to combat cyber-attacks.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /



Spinneys has announced the launch of The Kitchen by Spinneys, its first-ever 

Continue Reading

May 20, 2024 | By RetailME Bureau

In a move set to redefine the landscape of the Fast Moving 

Continue Reading

May 16, 2024 | By RetailME Bureau
Sunil Kumar and Ali Saeed Juma Albwardy, Spinneys

One of UAE’s leading fresh food retailers, Spinneys has announced its intention 

Continue Reading

April 19, 2024 | By RetailME Bureau
Laura Manning, Managing Director & Founder, BRW Society

Launched in 2019 by Laura Manning, UAE-based homegrown brand BRW Society completes 

Continue Reading

April 5, 2024 | By Rupkatha B
Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau




Download Images RetailME Magazine