John Gelles explains how Visa and Mastercard’s new credit card chips won’t live up to their billing as protecting against fraud. Here’s the crucial bit (emphasis added), but I recommend following the link and reading the entire article:
Why did it fail? Mark Horwedel, the group’s CEO, says a key reason is that different rules cover different kinds of fraud – and that, once again, Visa, MasterCard, and the big banks are chiefly taking care of themselves.
Studies show that PINs cut fraud losses by as much as 85 percent or more–one reason their use is also urged by such advocates as U.S. PIRG’s Ed Mierzwinski, who says consumers ultimately pay the costs of fraud either indirectly or as its victims.
Defendant A – A young con artist who cooks up a luxury home-buying scheme that helps him steal more than $75 million from investors and banks over seven years. It prompts one of the largest mortgage fraud investigations in U.S. history.
Defendant B – The CEO of what was once the nation’s fourth-largest bank. His aggressive pursuit of subprime mortgage assets helps precipitate the 2008 banking meltdown and the Great Recession. During the crisis, he conveys ownership of a $13.75 million Florida mansion to his wife and the firm manipulates its balance sheet to hide $50 billion worth of risky assets.
Many years ago, Martin Mull hosted a parody late night talk show called Fernwood 2Night, purportedly the UBS network, “the network that puts you before the BS.” (It turned me into a confirmed Martin Mull fan.)
Now comes UBS bank, the bank that puts the BS before you.