In light of the recent mass data breaches at retailers across the country, which have resulted in more than 40 million credit cards being stolen, cloned, and sold through the deep web, many lawmakers are demanding that the U.S. Congress stand up and mandate the adoption of card payment solutions and security standards to stop this sort of thing from ever happening in the future.
Among those demanding the new standards is Georgia Democrat representative David Scott, who believes that Congress needs to look at the new security measures that are already being used in other countries, like the smart card payment solutions that do away with a magnetic strip in favor of a chip embedded in the card.
The magnetic strip currently featured on credit cards, he believes, is an easy and open door for unscrupulous hackers, since the technology is, at this point, practically ancient, certainly obsolete, and thereby easy to crack. The EMV smart card payment solutions would not only better encrypt data but would add an additional line of protection in the form of a required PIN entry at the point of sale.
Scott believes that Congress is anxious to take action against future hacks in the future. But others don’t believe that it is Congress’ place to mandate the use of specific technologies. It has been noted that Visa, MasterCard, and other credit card vendors have already announced plans to shift to smartcards by the end of 2015 without legislation in place. While some lawmakers want to create a new national data breach notification law that would supersede the over 45 state laws currently in place, others have pointed out that Congress shouldn’t have the right to override tougher state laws.
There is a strong voice for private industry to create and implement new security standards for card payment solutions, without further interference from a Congress acting out of fear and panic.