Page 71 - Cyber Warnings

THE MEANS TO PREVENT FINANCIAL CYBERTHEFT IS

AVAILABLE

NOBODY IN THE U.S. HAS AUTHORITY OR CAPABILITY TO STOP THE CRIME
Harold Chanin, President Cyber-Theft Prevention Associates

There are two aspects of identity theft (IT).

To stop the crime of stealing another’s identity without seeking financial gain is basically a
mission impossible, not at-issue here. The financial side of this criminal coin is the issue.

Electronic financial theft (EFT).

The U.S. membership-credit card design could not serve EFT due to reliance on humans. But a
few decades later EFT emerged. The electromagnetic reel-to-reel audio tape was embedded on
the plastic card to enhance productivity and increase profits by reliance on electrons.

The accidental gift.

Shortly thereafter EFT quickly spread globally after the U.S. gave ownership of the card design
to the International Organization for Standardization (ISO) and operations to the International
Electrotechnical Commission (IEC) in Geneva, Switzerland.

The American National Standards Institute (ANSI) in Washington, D.C. is the U.S.
representative.

This unintended consequence expanded and extended this online crime syndicate’s reach and
capability, especially cyber hacking and breaching centralized government, business and
personal financial data and information repositories.

In response, ISO/IEC embedded the European microprocessor chip, thereby adding a layer of
electronic theft protection at points-of-sale to reduce processing fraudulent chip cards.

Business is business.

For decades thereafter few bought the chip’s costly, limited protection capability. But others saw
this new business opportunity. Still there was little acceptance of the chip card - most
noteworthy in the U.S. Fortunately for the entrepreneurs, the recent rash of vast, global EFT
resulted in several major marketing accomplishments within the U.S.

In 2014 President Obama signed the executive order those seeking federal contracts must be
using chip cards (such as the government’s SmartPay Card variant).

And in 2015 American banks and lenders proclaimed merchants not accepting the chip card
(such as the EMV Card variant) may then be held accountable for this loss.

71 Cyber Warnings E-Magazine – September 2016 Edition
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