Tech | December 09, 2009 | 2 comments

New Gift Card Laws Also Benefit Terrorists

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Paisano1
Let’s say you are a bad guy and have some “dirty” money to launder. Cards might be a good idea. First of all, there is no limit to how many cards you can buy. You can buy them with cash. You can sell them on an online auction site, transfer the value to a nonbank, and liquidate it by asking for a debit card you can use anonymously at an ATM. Or you can use pre-paid Visa cards to purchase items which you can then sell. And the law change makes this method even more lucrative.

http://information-security-resources.com/2009/12/09/new-gift-card-laws-also-ben...
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2 comments // New Gift Card Laws Also Benefit Terrorists

  • Paisano1
    • 0
      Paisano1  

    • The payment card industry is very rich, and very powerful. They actively engage in business practices that are less than secure in order to maximize profits from risk, so it's no surprise this goes unmitigated.

      Example: Why do the card companies push "convenience" payment - like signature debit, tap and go, etc. - over the vastly more secure PIN debit?

      Because they can charge a higher fee to the merchant for the riskier transaction, and make a lot of money doing it.

      The industry says they favor convenience over security, but it is more apt to say they prefer a 7-10% fee on a transaction over a 2-3% fee.

      And we pay in the end, of course...

    • 3 years ago
  • blood77
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