Chapter 14 Blog : Credit Card Fraud

Link: http://www.canada.com/story.html?id=809800


Summary:
As a result of the popularity and trends of credit cards, the global issue of credit card fraud has undesirably emerged. Currently, Canada’s financial institutions have slowly introduced a new design, incorporating a computer chip in each card. The traditional swipeable card with the old magnetic strip is gradually replacing the old form due to our technological advances. The change will prevent an anticipated loss of 300 million due to credit-card frauds. The idea is to insert it in a reading device throughout the transaction. This device will detect the computer chip, which will then be practically impossible to create a fraud for. The process of entering a PIN number is still required, but the signature part will not be needed. Enhancing the security of credit-cards, card holders will have a greater confidence carrying their credit cards out.

Connections:
Chapter 14 in our textbook mainly deals with cash control and banking, but it also has an interesting section on credit cards and their different applications. With respect to the credit card section of the textbook, it is known that the practical use of credit cards could introduce a “cashless society” for us. Similarly, the popularity of credit cards and its need to incorporate a new style of security feature, as described in the article, also leads us to this utopian idea. That is the reason why credit cards are to be reinforced with a fascinating security feature of computer chip to protect and ensure us for the continuous usage of our credit cards.

Personal Reflection:
With a keen desire for a credit card like most teenagers, I would always look forward for the legal age of 18. Having cards with your name carved on your card surely symbolizes maturity and independence. But after reading this article, this idea has slowly dissipated after reading this article. Furthermore, I now believe that payment with cash does seem to be a better idea in comparisons with credit cards. For one thing, the transaction fee and annual fees will be omitted with cash. For another, with a need for a 300 million funds to introduce this new security feature, credit card frauds must be indeed serious. Not wanting to be financially scammed or experiencing any sort of unfortunate events, I now choose to stick with the old style of cash payment rather those “dangerous credit cards for adults”.

- A. Tao
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