The number of credit card frauds is increasing, according to the latest data from Equifax, which does not surprise experts.
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Éric Parent, president and CEO of Eva Technologies, says he is “not surprised at all, because criminals are more and more organized and banks are not doing much to help.”
Our expert explains the risk factors to watch out for.
The first security issue, according to him, is the ease with which customers can obtain a credit card.
“If we look at the file of someone who already has 2, 3 credit cards, why are we able to easily go and get a fourth, a fifth, a sixth?”
He considers the outdated practices still used to this day to obtain a credit card “ridiculous”.
“When we apply for a credit card, it is still based on completely ridiculous information: date of birth, social insurance number”, information exposed several times during breaches.
He raises other security issues such as: “why are we able to apply for a credit card at a cardboard kiosk in a Walmart? It’s ridiculous”.
According to Mr. Parent, “we should be obliged to go to a bank” in order to prove our identity.
Who pays?
He believes that the problem persists due to the lack of consequences and sanctions against bank managers.
The consumer is the one who pays the bill.
After fraud, the customer can be seen as a person at risk, “even though he is not”.
“The bank is not that affected when there is fraud. Yes, she lost money, but it is the citizen, the victim who will have to make an effort” which could be spread over several months or more than a year.
For the financial institution, gains from new customers are “more interesting” than losses.
Miracle solution?
“This could be resolved quickly if we put in place personal penalties for managers of financial institutions when they issue a fraudulent credit card. From one day to the next, it would be a miracle!”
Watch the full interview in the video above.