The representatives of the top retailers were invited to Capitol Hill to testify about what was happening in their stores, where credit card information from tens of millions of customers had been stolen.
“The Secret Service is investigating the recent breaches and we are confident we will bring these criminals responsible to justice” assured William Nooman of the US Secret Service.
A first and important conclusion of the discussions was that the problem is identified as built into America’s financial infrastructure. Some types of cards are vulnerable because they rely on decades old magnetic strips not being replaced yet with the “chip and pin” technology. This has been in use in Europe for years but it’s considered a new technology in America. So, the appropriate, tested solution for a better security exists. Banks delayed to use it because the technical transition would cost billions dollars. Even if, as promised, the major credit card companies such Visa and American Express have plans to introduce more secure cards, this will have a cost because the retailers will need to change the card readers to comply.
