Thanks to out-of-date technology, hackers and other criminal elements in society are having a good time. And with an open society such as the United States, which is built on implicit trust, these very shrewd and perceptive hackers manage to get away with highway robbery.
Take the case of the recent Target theft that was massive in nature. The problem is that the magnetic strip on each credit and debit card is deciphered by stores throughout America by the same technology that is employed by cassette players to play music cassettes. Thus it is pretty obvious that the problem will become even more aggravated before the rift is healed. The technology belongs to a century that has been surpassed by the hackers. And they are very intelligent although evil individuals.
The interesting thing is that outside the United States, hackers have a more nerve-wracking time decoding codes. That is because silicon chips are embedded in the cards. Meanwhile, the Target grand theft that took place between November 27th and December 15th has left over 40 million customers in the lurch.
Credit card fraud is a highly specialized form of white collar crime. It costs companies millions of dollars each year, yet they do not change the security arrangements. And their laziness plays into the hands of the hackers who then infiltrate into the systems with ease. They of course get away with any amount of money from a few thousand dollars to millions of dollars in cold hard cash.