Plan announced to tighten card security
Associated Press
WASHINGTON
Saying more must be done to stop data breaches affecting consumers, President Barack Obama announced Friday a government plan to tighten security for the debit cards that transmit federal benefits such as Social Security to millions of Americans.
Cards issued by the federal government now will have an internal chip replacing magnetic strips to reduce the potential for fraud. Concern is growing over the security of Americans’ financial data, with an estimated 100 million people having been affected by breaches in the past year, including at big retailers such as Target and Home Depot.
In addition, the government will apply the security chips and personal identification numbers, called PINS, that replace signatures to all existing and newly issued government credit cards, Obama said.