Two weeks ago the National Association of Attorneys General (NAAG) sent a sign-on letter to attorneys general across the nation urging the implementation of chip and PIN technology in their states. The letter, to be sent to major card brands and issuers after those attorneys general added their signatures, sets forth the belief that chip and PIN should be the standard in the US and should be implemented without delay. This letter contains several mis-characterizations of security technology currently being used in the financial services industry, and directly contradicts the official positions of all four federal bank regulators, including the CFPB.
In response to this letter sent by the NAAG, CBI in conjunction with the Iowa Bankers Association and the Iowa Credit Union League have issued a statement to Iowa's Attorney General Tom Miller asking that he either decline to sign the above mentioned NAAG letter, or to withdraw his support if already given.
In response to this letter sent by the NAAG, CBI in conjunction with the Iowa Bankers Association and the Iowa Credit Union League have issued a statement to Iowa's Attorney General Tom Miller asking that he either decline to sign the above mentioned NAAG letter, or to withdraw his support if already given.
The statement makes the following points regarding chip and PIN implementation:
CBI holds the position that mandating the use of chip and PIN technology is a mistake that could potentially have greater consequences as fraud threats and methods evolve, and invites Iowa's Attorney General's office to further discuss what is a complex policy matter.
Read the letter to Attorney General Tom Miller.
Read NAAG letter to card brands and issuers.
- This is not a consumer protection issue;
- With or without a PIN, it's the chip that matters;
- PINs have nothing to do with data breaches;
- No technology is foolproof; and
- Financial institutions are focused on the future, not the past.
CBI holds the position that mandating the use of chip and PIN technology is a mistake that could potentially have greater consequences as fraud threats and methods evolve, and invites Iowa's Attorney General's office to further discuss what is a complex policy matter.
Read the letter to Attorney General Tom Miller.
Read NAAG letter to card brands and issuers.
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