The problem of payments fraud, particularly credit card fraud, is worsening, driven by such factors as changing consumer behaviour, as more purchases are being made online or where the card is not present, the increasing sophistication of cybercriminals, and the slow adoption of chip and PIN and non-compliance with recommended security standards in countries such as the US. The fraud increase and high-profile data breaches at payment processors are now drawing greater regulatory focus on the issue. From the regulators’ side, there is a view that stronger fraud prevention and detection measures are needed. Tony Chew, head of the technology risk supervision division of the Monetary Authority of Singapore, is advocating for a concerted global effort to phase out magnetic stripe technology entirely. “We can all go chip and PIN which will be a more effective method of combating counterfeit card fraud,” says Chew. Source: The Asian Banker June 12, 2009

BIIA Newsletter June 2009 Issue