TRANSACTION PROCESSING FRAUD IS AN EVER INCREASING PROBLEM.
Over the last several years data breaches and compromises of large credit card processors and retailers have had devastating consequences to the retail payments industry. In the United States, breaches have compromised the "sensitive" data of millions of card accounts, potentially leaving consumers exposed to identity theft. The hacking technology and the professional criminals that perpetrate the hacks are evolving faster than the standards are being improved or subscribed to by retailers and processors. The situation has become so bad that card issuers of all sizes routinely block and reissue large percentages of their credit and debit card portfolios on a daily basis to the point where it has now become business as usual to do so.
As a result, many stakeholders in the industry including retailers, acquirers, processors and issuers are questioning whether the Payment Card Industry (PCI) Data Security Standard (DSS) adequately addresses the security challenges facing the industry. These standards may help prevent cardholder data breaches, but certainly have not proven to be a panacea for fraud prevention. Because of this, industry players are balking at the exorbitant costs associated with maintaining compliance with the PCI-DSS annual audit requirements.