Smart Cards Can Prevent Experian Type Password Fraud

Smart Cards Can Prevent Experian Type Password Fraud

Princeton Junction, NJ, November 25, 2002–The fraud perpetrated against Experian and other credit bureaus makes clear the risks associated with relying on password protection for securing information systems and databases.

“The ease with which passwords can be stolen and distributed puts the integrity of virtually all of our nation’s information systems at risk,” said Randy Vanderhoof, executive director of the Smart Card Alliance. “Any system where access is protected only by passwords is rich with fraud possibilities.”

According to the Smart Card Alliance, a solution is straightforward for those who choose to act. Companies and government agencies with a desire to lead in the area of information confidentiality and security are moving to smart card technology as a simple and convenient way to end this risk. Schlumberger, Microsoft, Shell and the United States Treasury Department all have initiatives that will require the presentation of both a highly secure smart card and a personal password before information and networks are accessed.

Consumers do not get to choose how their personal credit information and privacy details are protected in America’s information systems. They trust the corporate executives and information technology managers that control the flow and use of that information. Those executives that rely solely on password protection, like the nation’s’ three leading credit agencies, are presenting an increasingly unacceptable level of risk to their customers and American consumers. If protection of clients and consumers is not sufficient motivation, they should perhaps think about the potential risk to shareholders from class action lawsuits related to information system security failures.

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to accelerate the acceptance of smart card technology.

Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S.