[fc-discuss] Financial Cryptography Update: FraudWatch

iang@iang.org iang@iang.org
Tue, 7 Mar 2006 19:01:27 +0000 (GMT)


((((((((((((((( Financial Cryptography Update: FraudWatch )))))))))))))))

                             March 07, 2006


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https://www.financialcryptography.com/mt/archives/000673.html



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Chip&Pin in Britain measured a nearly full year of implementation
(since February) and found fraud had dropped by 13%.  They say that's
good.  Well, it's not bad but it is a far cry from the 80% figures that
I recall being touted when they were pushing it through.

=======8<==============
The Chip and Pin system cut plastic card fraud by 13% in 2005,
according to the Association of Payment Clearing Services (Apacs). 
Losses due to the fraudulent use of credit and debit cards fell last
year by £65m to £439m.

Most categories of fraudulent card use dropped, except for transactions
over the phone, internet or by mail.  Chip and Pin cards were
introduced in 2004, with their use becoming required in shops from
February this year.

The new type of card appears to have brought a decisive turnaround with
fraud levels now back to the levels last seen in 2003.	In 2004, as the
new cards were being introduced, card fraud continued to shoot up, by
20%, costing banks and retailers more than half a billion pounds.

Sandra Quinn of Apacs hailed the impact of Chip and Pin, which has been
rolled out to most of the UK retailing and banking industries since
October 2003:

"Seeing card fraud losses come down is cast-iron proof that Chip and
Pin is doing its job.  Back in 2002 we forecast that fraud would have
risen to £800m in 2005 if we didn't make the move to Chip and Pin so
it's heartening to see total losses well beneath this figure" she said.

So maybe if we factor in such a prediction of 800m, down now to 439, we
are seeing a drop of 45%.  I'd say that according to <i>GP</i> they
moved too late and ended up with an institutionalised fraud at a high
and economic level.  Clawing that back is going to take some doing.
===========>8===========

And, also from PaymentNews, the US mint continues its sly dance to use
other colours than green:

http://www.moneyfactory.gov/newmoney/images/features/thumbnails/ink_10_
sm.jpg
http://www.moneyfactory.gov/newmoney/main.cfm/currency/new10
=======8<==============
The desire of the American public to not change the greenback is
legendary in minting circles, resulting in perhaps the most forgeable
unit on the planet.

Security Features
The redesigned $10 note also retains three of the most important
security features that were first introduced in the 1990s and are easy
to check: color-shifting ink, watermark and security thread.

Color-Shifting Ink: Tilt your ten to check that the numeral "10" in the
lower right-hand corner on the face of the note changes color from
copper to green. The color shift is more dramatic on the redesigned
notes, making it even easier for people to check their money.

Watermark: Hold your ten up to the light to see if a faint image of
Treasury Secretary Alexander Hamilton appears to the right of his large
portrait. It can be seen from both sides of the note. On the redesigned
$10 note, a blank oval has been incorporated into the design to
highlight the watermark's location.

Security Thread: Hold your ten up to the light and make sure there's a
small strip embedded in the paper. The words "USA TEN" and a small flag
are visible in tiny print. It runs vertically to the right of the
portrait and can be seen from both sides of the note. This thread glows
orange when held under ultraviolet light.

To protect our economy and your hard-earned money, the U.S. government
expects to redesign its currency every seven to ten years. 
===========>8===========

Everything is good fun about that page, even the URL!

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