New Regulations To Stamp Out Credit Card 'e-fraud'

A new industry regulation is to be implemented ordering online retailers to smarten up their security and data handling processes. From June 30th, businesses that sell goods over the internet will be governed by the new Payment Card Industry Data Security Standard.

The standard, to be implemented in order to battle the continuing problem of credit card and ID fraud, was put together by Visa and MasterCard. The move comes in the wake of several high-profile cases in which the need for more security was highlighted. Figures show that consumer confidence is dropping over the safety of credit cards, especially when used to buy online.

Credit card information of 1.2 million federal workers was mislaid by the Bank of America with 310,000 customers' personal details being stolen by ID criminals at a subsidiary of data broker LexisNexis.

The new regulations will enforce online retailers to install and maintain a firewall to protect data as well as encrypting the transmission of cardholder data and sensitive information. In addition, all traders will be expected to use and update anti-virus software.

Non-compliance with the new regulations could have significant repercussions. Heavy fines will be imposed and the retailer may even lose the right to offer Visa or MasterCard as forms of payment - something which will greatly affect their business.