Visa USA president and CEO John Coghlan has called for a national data protection standard and tougher penalties for criminals responsible for card and data fraud, while authorising a $200 million increase in anti-fraud spending at the card scheme over the next four years.
Speaking at a Visa-convened card security summit, Coghlan told an audience of bankers, merchants and law enforcement officials that the time for cross-industry collaboration on issues of cardholder security has arrived.
Specifically, Coghlan called for:
- A national, uniform data protection standard for every entity that retains sensitive personal information.
- A national standard for consumer disclosure of security breaches in place of multiple state laws.
- Tougher penalties for criminals responsible for card and data fraud.
- International collaboration to ensure that data thieves are brought to justice. Specifically, Visa supports an international treaty that bans trafficking in stolen card data and legislation that would give the FTC greater ability to cooperate with law enforcement agencies worldwide to fight cross-border fraud.
Significant investments in technology by all participants in the card industry would also be required, he said. "I have also directed an increase in our spending in anti-fraud measures by at least $200 million over the next four years."
He says Visa systems currently flag roughly 250,000 transactions every day for possible fraud, and that the card scheme has so far been involved in over 80 separate fraud investigations during 2005.