RE: Is the Bottom Line Impacted by Security Breaches?

["Todd Towles" <toddtowles () brookshires com>]

Plus, it was shown recently that personal credit card fraud via ID theft
is smaller than victimless credit card fraud.

http://www.theregister.co.uk/2005/09/16/gartner_phantom_fraud/

It is a very good rundown on why the banks just really don't have a
reason to chase after them and stop them.

-Todd

> -----Original Message-----
> From: full-disclosure-bounces () lists grok org uk 
> [mailto:full-disclosure-bounces () lists grok org uk] On Behalf 
> Of Frank Knobbe
> Sent: Wednesday, September 28, 2005 1:54 PM
> To: ken () ftusecurity com
> Cc: full-disclosure () lists grok org uk
> Subject: Re: [Full-disclosure] Is the Bottom Line Impacted by 
> Security Breaches?
>
> On Wed, 2005-09-28 at 10:22 -0400, Kenneth F. Belva wrote:
> > In the paper I ask: "If 40 million customer credit card numbers are 
> > exposed in a security breach at the credit card processor 
> CardSystems, 
> > why do a significant number of people not cancel their Visa and/or 
> > Mastercard?"
>
> Simple. The credit card numbers are exposed every time they 
> make a purchase as well. Now, it someone commits fraud with 
> your name and card number (which a convenience store clerk 
> can do himself... no high-profile server breach needed), then 
> the customer is only liable for minimal damages. The risk and 
> liability lies with the credit card company.
>
> Perhaps you should ask:
> "If 40 million customer social security numbers are exposed 
> in a security breach at the credit card processor 
> CardSystems, why do a significant number of people not 
> request new social security numbers?"
>
> After all, there is no limit on liability with fraud on those....
>
> Regards,
> Frank
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