President Barack Obama last week issued an executive order aimed at preventing payment card fraud and identity theft with the U.S. government’s payment processing programs and mandated a push toward chip-and-pin technology for federal offices.
“Given that identity crimes, including credit, debit, and other payment card fraud, continue to be a risk to U.S. economic activity, and given the economic consequences of data breaches, the United States must take further action to enhance the security of data in the financial marketplace,” stated Pres. Obama in the order. “While the U.S. Government’s credit, debit, and other payment card programs already include protections against fraud, the Government must further strengthen the security of consumer data and encourage the adoption of enhanced safeguards nationwide in a manner that protects privacy and confidentiality while maintaining an efficient and innovative financial system.”
All new payment processing systems should be in place by Jan. 1, 2015, the order directed. All credit, debit and other payment cards must have enhanced security features no later than that date. The order also noted that agencies have the option to continually upgrade to “more effective technology and standards to improve the security of consumer financial transactions as technologies and threats evolve.”
The order also recommended streamlining reporting and identity theft remediation processes with credit bureaus to reduce the burden of fraud on consumers.
Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
