The convenience of debit and credit cards has come with the risk of cyberattacks and fraud. Hacking of payment systems has led not only to direct costs for financial institutions and retail businesses, but also to damage to company reputations and stock prices. Yet making systems more secure isn’t free, either -- and the companies that would bear the cost of upgrading aren’t necessarily the ones that would benefit. The cover story in the latest issue of Econ Focus looks at these and other economic problems involved in payment security.
Also in this issue:
Econ Focus is the economics magazine of the Federal Reserve Bank of Richmond. It covers economic issues affecting the Fifth Federal Reserve District (the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia) and the nation.
For a free subscription to Econ Focus or for copies of the magazine, contact the Bank’s Research Publications division at (800) 322-0565 or subscribe online. The articles are available online at http://www.richmondfed.org/publications/research/index.cfm.
The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.