Security Breach Of Banking Industry And Retail Business

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Security Breach in Banking Industry and Retail Business Financial technologies play a significant role in modern banking system. Most of us are familiar with internet banking and mobile banking. These technologies allow us to access our accounts, transfer funds, pay for our purchases, and even apply for a loan without leaving a house or an office. In addition, most of us prefer to pay for our purchases with a quick swipe of a credit or a debit card. No doubt, it is more convenient than caring and counting cash every time we go to a store. But, unfortunately all these technologies come at a cost. Time to time, we hear news about another security breach in the banking system or retail business, when customers’ personal information is…show more content…
For example, in April of 2013, “Bank of America sent out alerts saying they disabled several area cards out of fear that account information may have gotten into the wrong hands” ("Bank of America Alerts Customers of Security Breach." CBS St Louis). The spokesman for the bank said: “We have not heard of anything specific, but I can tell you that we, along with other banks, periodically receive alerts from the payment networks about cards that may have been compromised at a third-party location”( "Bank of America Alerts Customers of Security Breach." CBS St Louis). In May of this year, several residents of Lawrence County in Missouri reported “that their Commerce Bank debit cards had been compromised following a security breach over the weekend. Carl Bradbury, director of consumer card product for Commerce Bank, said that about 1,500 customers in various states were affected by a “merchant’s” security breach” (Doombos, Caitlin. "Lawrence Residents Report Commerce Bank Debit Cards Compromised in Security Breach." LJWorld.com.). Bradbury also added, that “security breaches in the banking industry are not rare. He noted about ‘60 to 80 breaches are going on’ at any given time” (Doombos, Caitlin. "Lawrence Residents Report Commerce Bank Debit Cards Compromised in Security Breach." LJWorld.com). In almost 80 percent of cases, banks notify customers of
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