State Senator wants to thwart credit and debit card fraud with smart chip tech

Kicking credit card scammers to the curb is the goal of State Senator Marty Golden, who is tackling the rapidly growing issue with legislation that promotes smart chip technology.

“I am proud to announce that I am sponsoring legislation in the State Senate that would create much-needed protection against credit and debit fraud,” said Golden during a press conference on March 21. “I am calling for the state legislature, and the governor, to act this year on this bill that will require credit cards issued to New York State residents to be equipped with smart chip technology.”

The technology, which trades swiping the magnetic stripe on a card with scanning a chip, has yet to be used in the United States. However, it is in use in countries such as Canada, yielding strong results. Europe has also experienced success using it, according to Golden.

“It’s long overdue, this technology,” said Golden. “In Europe and Canada, this is already in place. In Canada alone, 45 percent of the theft has been brought down there.” Canada introduced the technology in 2009.

Golden was joined by President of the Merchants of Third Avenue, Robert Howe, who discussed the toll the recent fraud has taken on the businesses in the neighborhood. “They are facing a real problem and that’s credit card fraud and theft of data,” Howe explained. “Small merchants work a long time to create good will, customer service and a good client base. And within a nanosecond or a flip of a mouse, that can all be done away with if their clients’ or customers’ data is stolen. Theoretically, they could be put out of business.”

Several Bay Ridge shoppers and residents have been hit by these crooks and would welcome the potential upgrade. “I think it’s a great idea,” said Liz Y. “I was once a victim of credit card fraud. I really hope (the smart chip) will help.” Peter M, another Bay Ridge resident agrees. “I thought we should’ve done it a lot sooner. Everywhere else has one.”

According to the Bureau of Justice Statistics, an estimated 16.6 million people experienced at least one incident of identity theft in 2012.

President of Bank Associates Merchant Services Dimitri Akhrin was also on hand to address the problem. “This has been a discussion for quite some time, but a lot of folks, in smaller, medium-size and bigger businesses felt that this would never happen to them,” Akhrin explained. “The hackers are getting more sophisticated and are targeting a wider range of merchants.”

The argument was made that the majority of credit cards possessed by customers are outdated. “Most credit cards issued to New Yorkers still rely on the magnetic stripe, a technology developed in the 1960s which is much easier to hack than the microprocessor chip that is encrypted,” said Golden, who has also been a victim of credit card theft.

“Our community here has been compromised,” he went on, with the fraudulent charges being made locally as well as, as far away as Puerto Rico.

Golden said he hopes smart chip technology can be added to cards by 2015.

In the meantime, Golden had some advice for consumers. “Keep personal date private,” he said. “Think before you share your personal information. Be proactive in detecting fraud. Always check your statement. It’s a no brainer.”

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