Credit Cards Essay
1326 Words
5 Pages
Consumer spending patterns have been very volatile throughout history, which reflects the many ups and downs in the economy of the United States of America since the 18th century. After World War I and then again after World War II, there was a great culture shock where many goods once considered luxuries became necessities of the American people. The economy was booming again and providing US citizens with potentially unlimited opportunity. The United States of America has the fundamental root of materialism embedded in its culture, and the introduction of credit cards revolutionized the way consumers could fulfill the “American Dream.”
History of Credit Cards in America
The concept of credit has been around for centuries; however the history …show more content…
Magnetic strip cards have vulnerabilities in the authentication process. Magnetic strips use a static technology for their verification codes, which means that it is always the same, and can be easily exploited in many different ways. A new technology founded in the mid-1990s has provided a potential for an extreme reduction in fraudulent cases. Credit card companies have started to introduce the technology of an embedded chip (EMV chip technology) inside of the card. The EMV chip system augments the old magnetic strip cards with a chip that can authenticate a transaction using cryptography (Anderson, R. & Murdoch, S., 24). A computer chip card has the capability to protect sensitive data through encryption, it can authenticate messages that it receives, and can also send more reliable messages to the issuers for an authentication process (Sullivan, R., …show more content…
When tampering with chip and PIN terminals, criminals were able to record card details and consumer PIN numbers. The con artists were also able to modify the terminals and have access to every terminal in the region. Most of the cards during the implementation process in the U.K. had stored a duplicate of the magnetic strip on the embedded chip. The fraudsters were then able to create fake magnetic strip cards used for the ATM. As stores started to accept PINs at point of sale, the ability to forge and receive this information became much more
History of Credit Cards in America
The concept of credit has been around for centuries; however the history …show more content…
Magnetic strip cards have vulnerabilities in the authentication process. Magnetic strips use a static technology for their verification codes, which means that it is always the same, and can be easily exploited in many different ways. A new technology founded in the mid-1990s has provided a potential for an extreme reduction in fraudulent cases. Credit card companies have started to introduce the technology of an embedded chip (EMV chip technology) inside of the card. The EMV chip system augments the old magnetic strip cards with a chip that can authenticate a transaction using cryptography (Anderson, R. & Murdoch, S., 24). A computer chip card has the capability to protect sensitive data through encryption, it can authenticate messages that it receives, and can also send more reliable messages to the issuers for an authentication process (Sullivan, R., …show more content…
When tampering with chip and PIN terminals, criminals were able to record card details and consumer PIN numbers. The con artists were also able to modify the terminals and have access to every terminal in the region. Most of the cards during the implementation process in the U.K. had stored a duplicate of the magnetic strip on the embedded chip. The fraudsters were then able to create fake magnetic strip cards used for the ATM. As stores started to accept PINs at point of sale, the ability to forge and receive this information became much more