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StumbleSun editorial:
Electronic fraud
Federal government should step in if companies can’t protect credit card information
Tuesday, June 16, 2009 | 2:04 a.m.
Despite what credit card companies would have you believe, the computer networks that handle transactions are vulnerable to hackers.
The Associated Press reported that since 2006, more than 70 retailers and credit card companies have reported security breaches, including one that left 100 million accounts exposed to thieves. Experts say there are likely many more breaches that have gone unnoticed or unreported.
In an analysis of industry records, the AP found that companies that deal with credit card transactions haven’t taken sufficient precautions to ward off identity thieves.
In 2006 a group of major credit card companies formed the Payment Card Industry Security Standards Council to set uniform security rules for merchants. Most merchants — 93 percent of large retailers and 88 percent of mid-size ones — have complied with the standards. But the standards aren’t terribly rigorous, requiring the installation of basic software and an annual test of the security system. The standards allow more than 99 percent of retailers to test and evaluate themselves.
The credit card industry has balked at taking steps to increase security levels, such as encrypting all data it sends over computer networks, because it says added measures would be too expensive and would slow customer transactions. The companies are taking a risk at the expense of millions of card holders. Apparently, a little fraud is just the cost of doing business, but it is disastrous for the customer who is victimized.
Considering how much of the economy is made up of credit and debit card transactions, that is unacceptable. If the credit card industry won’t improve standards, the federal government should step in to protect consumers.
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"Apparently, a little fraud is just the cost of doing business, but it is disastrous for the customer who is victimized."
As long as money is on the table someone else is going to reach for it. When in human history has it ever been different?
You did good exposing this flaw, Sun. Now when are you going to take the forbidden step and expose the biggest fraud -- how credit cards from national banks are actually illegal to issue in the first place?
KillerB says "credit cards from national banks are actually illegal to issue in the first place".
Cite? Extraordinary claims require extraordinary substantiation.
lvsundog -- The National Bank Act of 1864, 12 USC 24 (SEVENTH), Hansen v. Sullivan, 52 P.2d 895 (Washington).
Then once you understand the term "ultra vires the bank" here's a few:
Central Transp. Co. v. Pullman's Palace-Car Co., 139 U.S. 24; Bowen v. Needles Nat. Bank, 94 Fed 925 (9th Circuit); Navigation Co. v. Hooper, 160 U.S. 514; Union Pac. Ry. Co. v. Chicago, R.I. &P. Ry. Co., 163 U.S. 564; McCormick v. Bank, 165 U.S. 538; Bank v. Kennedy, 167 U.S. 362.
It sounds as if "KillerB" is evading the question. Those who want to convince someone of their point of view do not put the burden of research on those whom they try to convince. Either give links or direct quotes, not case names where most of us do not have access to paid services.
"It sounds as if "KillerB" is evading the question."
You asked "Cite?" and that's exactly what you got.
And why do you think I'm trying to "convince" you? I offered an opinion based on my own research. Just like you did.
Here's one, Hansen v. Sullivan (Washington Supreme Court, 1935, never overturned or distinguished) fleshed out:
In People's Nat. Bank v. Southern States Finance Co., 192 N.C. 69, 133 S.E. 415, 419, 48 A.L.R. 519, it was said:
'A corporation, organized and engaged in the banking business, whether under the National Bank Act or under the laws of the state, can assume no liability, without acquiring assets to offset the same. The interest not only of depositors and stockholders, but also of the public, can be safeguarded only by a rigid and consistent enforcement of this salutary rule. It has been held by this court, both upon principle and upon uniform authority to that effect, that a banking corporation cannot lend its credit to another by becoming surety, indorser, or guarantor for him.'
The cases of Farmers' & Merchants' Nat. Bank v. Smith (C.C.A.) 77 F. 129, and Commercial Nat. Bank v. Pirie (C.C.A.) 82 F. 799, are to the same effect.
I haven't found where Nevada has ever addressed the lend credit issue.