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Financial IndustriesTurning a Blind-eye

By timg ·
With the facts printed regularly regarding: "mi2g research has consistently shown that Brazilian, European, and U.S. criminal syndicates are carrying out credit card and identity theft in increasing numbers by targeting proliferating online vendors and their credit card settlement agents."

Why then have we not seen a greater demand by individual business to vary the method's by which these frauds and Identity thefts are carried out? Is it the fact that the Credit Card Companies would shudder to envision a future were by Financial/Retail Companies might take advantage of some of the advancements in encryption technology and network/procedural enhancements which allow for a more customized payment system to be implemented. Payment System's now exist ( which offer this heighten security due to proprietary, less centralized database storage. Excellent security from increased obscurity and the implementation of other readily available security enhancements can lessen theconsolidated attacks on payment processors and financial databases. Is the Credit Card Industries strangle-hold that powerful? It's just a matter of time before the individual customers learn that they weren't required to use a Credit Card online (all along).

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Acceptable loss

by Oldefar In reply to Financial IndustriesTurni ...

I suspect there is less "blind-eye" involved and more "acceptable loss" behind this. There may seem to be a case for saving millions in fraud loss, but when the loss as a percentage of total profit is sitting below 1 percent and the cost of change is about the same, the financial institutions have no business driver.

Identity loss is seen more as a criminal and social issue impacting individuals rather than as an issue to financial institutes. Until it happens to you, it is simply an interesting feature spot on the evening news.

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