Eataly recently announced they joined the list of retailers to be victim of a data breach. They believe the malware was compromised at the NYC Retail Market Place location on 5th Avenue. The payment card transaction data of customers occurred from January 16, 2015 and April 2, 2015. Technology is changing quickly when it comes to data protection. Europay, MasterCard Visa (EMV), is the new technology for businesses to use at their Point of Sale to prevent data breaches.
So why is this important for businesses?
This is the new evolution of building out a more secure and innovative payment systems. A chip is embedded into newly reissued credit cards to make payments more secure is technology that was widely being used globally and is now in the US. Here are the three things you need to know:
1. Consumers love new technology: Especially if it means keeping their information more secure or it leads to a more efficient process. In the world of weekly data breaches, consumers want to know businesses are staying ahead of the curve and are current on technology and security trends.
2. Prevention Matters: EMV as a form of prevention results in less fraud. This technology upgrade will stop large amounts of data breaches, and if someone steals large amounts of data it will not be possible to replicate it onto a card to be used at another location.
3. Reduce Your Liability: As of October 1, 2015 businesses will be liable for all data breaches if the business has not converted to the new EMV technology. This means if a business experiences a data breach after October 1st, AND has not transitioned their payment system to include chip recognition technology, credit card companies (Europay, MasterCard, Visa, and American Express) will not incur or insure that loss. That loss will be the responsibility of the business owner for not using the highest level of technology available to have prevented the data breach.
Even with the new chips, all credit and debit cards still have a mag stripe. There is no legal requirement for companies to convert by the October 1st deadline, so this will not happen overnight. Businesses may need new card processors if one has not been replaced in the last few years. The best way to know is to contact your provider.
Moving to this new platform helps banks take advantage of this new technology and focus on:
1. Customer Experience: It’s a great way into increase trust with consumers.
2. Brand Message: It’s clear companies are taking strides to reduce security risks.
3. Simplicity: The banks are doing the work of replacing all the cards for their hundreds of millions of users. Business owners, simply need to upgrade their technology.
Don’t be the business that is forced to tell a customer the reason they can’t purchase food, get that birthday gift for their daughter, or pay a bill on time is because your company didn’t have this new technology. The lack of proper security prevention measures always becomes personal for somebody.
Stay tuned for part two where we discuss which industry is most vulnerable!