The battle against credit card fraud is inching forward. As of Thursday, the liability for fraud committed using traditional MasterCard and Visa magnetic-stripe credit and debit cards will shift from banks to stores. The move is part of a drive by the banks and payment companies to get people to use the new, more secure cards embedded with computer chips.
Roughly half of all global credit card fraud occurs in the U.S. even though the country makes up only about a quarter of all credit card transactions, according to a report by Barclays earlier this month. In part, that’s because a 50-year-old technology that relies on a magnetic stripe at the back of the card, has lingered in the U.S. despite being replaced in most of the world.
ABC’s Scott Goldberg joined us from New York City.