Payment Card Fraud

A recent study by Richard J. Sullivan of the Federal Reserve Bank of Kansas City looked at security within the payment card industry. As its title indicates, β€œThe Changing Nature of U.S. Card Payment Fraud: Issues for Industry and Public Policy,” focuses primarily on potential public policy responses to payment card security. Even so, it offers insight and information of use to accounts payable professionals. Since 2005, at least 2,221 breaches of card data in the U.S. have been made public; these encompass nearly 500 million records. Just eight extraordinarily large breaches – TJX, TD Ameritrade and Heartland Payment Systems, to name a few – account for about four-fifths of these records. So, while nonbank payment processors accounted for just two percent of the breaches, these covered nearly 40 percent of the records compromised. Nearly two-thirds (64 percent) of breaches are the work of outsiders. However, more than a fifth are a result of accidental disclosures by insiders. […]