Obama Uses Executive Order To Improve Credit Card Security
President Barack Obama has increased security measures for federal credit cards through a just-signed executive order. He also encouraged banks and retailers to boost security efforts. It is all in an effort to fight the rise in identity fraud.
The order was signed before regulators at the Consumer Financial Protection Bureau and it will add microchips and PIN numbers to government credit cards and debit cards starting in January reports the Chicago Tribune. The order aims to make credit card transactions more secure.
This came at the same time that Obama had his credit card declined at a posh New York restaurant. (First Lady Michelle had to pay.)
“It turned out I guess I don’t use it enough, so they thought there was some fraud going on,” he said.
Some 100 million Americans have been affected by identity theft just this last year. Such retailers as Target, JPMorgan, Wal-Mart, and Home Depot have suffered cyber security breaches that compromised customer data. These retailers as well as Walgreens will debut secure chip and PIN-compatible card terminals in all their stores, most by January.
Also American Express will launch a $10 million program to assist small businesses in upgrading their sale terminals. Visa will invest in education programs about microchips, Mastercard offers free online identity theft monitoring, while Citi Cards will hookup with FICO to offer free credit scores.
“The idea that somebody halfway around the world could run up thousands of dollars in charges in your name just because they stole your number, or because you swiped your card at the wrong place in the wrong time, that’s infuriating,” Obama said.
Obama urges Congress to “do its part” and pass cyber security legislation that will create a national standard for dealing with data breaches.