News that another payment processor has suffered a data breach could lead to US government intervention.
Paul Davie, founder and COO of Secerno, claimed that processors such as Heartland are deliberately being targeted and there is a real opportunity for the new administration to improve credit card security.
Davie said: “I suspect these processors are being targeted due to the extreme volume of data they handle, with tangible value associated with each record. Effectively, you can do a lot of damage with just a card number, name and expiration date. These guys have the infrastructure to steal and release that value, so volume becomes the key attraction.
“Obama has a unique opportunity to drive through political changes nationally and internationally to raise the security bar here. At a corporate level, he could tighten up disclosure rules – making them faster, with fewer loopholes.
“At an individual transaction level, he could also bring US credit card handling up to European levels, where cards contain chips which are read for customer present transactions and where the security code on the back is always required when not present. The US should be taking a world lead on these issues and he has a golden opportunity to make this happen.”