Credit card and other financial card fraud is a major concern for banks the world over, says Data Management Systems (DMS) Ltd. In a press release, DMS stated that according to the US Department of Homeland Security, the cost of credit and charge card fraud may be as high as US$500 million a year.
DMS, in conjunction with Datacard Corp of the US, conducted a seminar last week to highlight the importance and necessity for banks to issue financial cards 'in-house' instead of sourcing them from overseas bureaus. DMS stated that cardholders often face economic losses, lengthy legal battles and struggles to re-establish clean credit records.
The seminar was conducted by a Datacard's Technical Director Jean Henaff, a veteran of the Smart Card industry. Previously, the press release said most financial institutions in the world issued magnetic striped based credit, debit and ATM cards. As counterfeiting of these cards and card frauds were increasing rapidly, the smart card was invented in France to eliminate fraud associated with magnetic stripe based financial cards.
A smart card is a plastic card which is the same as the conventional Magnetic stripe card but it has an embedded microchip that can be programmed/loaded with data, the card holders PIN number and can also be used for electronic cash payments, telephone calls and other applications and periodically refreshed for continued use.
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