Susanne Posel ,Chief Editor Occupy Corporatism | The US Independent
April 30, 2014
Users of Target’s REDcard will find that newly issued replacement cards are equipped with the chip-to-pin (CPCs) RFID technology thanks to MasterCard (MC).
The National Retail Federation (NRF) wrote a letter to Senate Majority Leader Harry Reid and House Speaker John Boehner to implore Congress to adopt the chip-to-pin (CPIN) cards with legislative backing in order to ensure the public is protected by the federal government against hackers.
Matthew Shay, president and CEO of the NRF wrote : “Our partners in the financial sector have a critical role to play in making sure their cards are secure,” NRF President and CEO Matthew Shay said in the letter. “For years, banks have continued to issue fraud-prone magnetic stripe cards to U.S. customers, putting sensitive financial information at risk while simultaneously touting the security benefits of next generation ‘Pin and chip’ card technology for customers in Europe and dozens of other markets.”
Target is currently “in the process” of making this change as a “renewed commitment to information security” following the recent major data breach that resulted in customer information syphoned by hackers.
Bob DeRodes is replacing Beth Jacobs as chief information officer (CIO) and leader of this CPC charge.
By next year, all Target REDcards will be embedded with chips with customers having to enter their PIN to “complete the transaction”.
DeRodes has been a senior information technology adviser to:
• The US Department of Homeland Security (DHS)
• US Secretary of Defense
• US Department of Justice (DoJ)
DeRodes will be responsible for:
• Enhancing monitoring and logging with more rules, alerts and centralized feeds
• Point-of-sale systems that whitelist applications
• New network firewall rules and a governance process
• Limiting vendor access
• Reset 445,000 Target employee and contractor passwords
Last March, Visa and MasterCard combined forces to revamp payment processes and up security measures in the wake of retail data breaches.
This new super-group of credit issuers will include:
• Banking institutions
• Credit unions
• Retail corporations
• Industry trade groups
The purpose of the conglomerate is to push for the adaptation of the EMV chipped card so that activity can be monitored for customer safety.
Both MasterCard and Visa laid out an ultimatum to the public that by October 2015 all retailers must adopt this new payment system or suffer the consequences.
Ryan McInerney, president of Visa asserted: “The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security.”
The Smart Card Alliance (SCA) believes that “chip-based payment cards and terminals” are the only way to protect customer funds.
The SCA explains that “EMV chip cards contain embedded microprocessors that provide strong transaction security features and other application capabilities not possible with traditional magnetic stripe cards.”
In 2011, MasterCard positioned itself against cash payments in a “war on cash” which focused on markets such as India to bring the “cashless society” to reality.
Ajay Banga, chief executive officer of MasterCard Worldwide spoke at the Fletcher School about the advantages of a cashless world and outlining the “challenges of moving away from cash.”