---- Report: U.S. Online Crime Almost Doubled In 2009
- 8:43 am on Mar 17, 2010
Losses totalled $560m (£371m) in 2009
Let me debunk the hype.
First, most of the so-called credit card fraud doesn't harm the banks whatsoever, they kick it back to the merchants.
Many of the major banks could afford to eat the losses, writing them off, instead of screwing the poor merchants that the banks authorized those fraud charges for in the first place.
Wells Fargo reported record profits of $3.2 billion, the company said Wednesday, nearly doubling the amount of money it made just a year ago.
Not all of the economy is as shaky as it sounds.
Do the math, 1/6 of Wells Fargo earnings for ONE QUARTER would cover all that fraud.
I'm all for stopping the fraud but if legislation were passed that put the blame solely on the credit card company authorizing the fraud purchases, fraud would stop in a New York minute.
They've been tinkering with PIN #s and real-time customer authorization via cell phones yet it's gone nowhere.
Make the government force the bank to eat those charges and you'll be entering PIN #s and pressing "1" to authorize sales in no time at all.
Most common CC fraud will be gone just that fast.
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