http://www.profitableinvestingtips.com/stock-investing-tips/target-security-breach-and-emv-cards
Target Security Breach and EMV Cards
As many as 40 million credit and debit cards were compromised recently when hackers breached security of Target Corporation, TGT. Target customers are changing pin numbers, canceling cards, and using cash. We are thinking about investment opportunities related to this fiasco, the connection between the Target security breach and EMV cards. What fundamental analysis does one need to do to profit when the USA switches to EMV cards? The intrinsic value of stock is its forward looking income stream and if the USA switches over to EMV cards that is a lot of money.
Information on a Debit or Credit Card
The type of magnetic strip credit or debit card used in the USA contains encrypted PINs, customer names, credit and debit card numbers, card expiration dates and the embedded code on the magnetic strip on back of the card. Possession of this information could allow a thief to withdraw money from a bank account, engage in identity theft and generally make the life of the victim miserable. While the type of card used in Europe contains the same information it uses a different technology. The Target security breach and EMV cards are not compatible. That is to say this would probably not have happened if the USA had gone to the EMV card years ago.
EMV Cards
EMV stands for Europay, MasterCard and Visa. EMV is a global standard for inter-operation of integrated circuit cards. These are also called IC cards or chip cards. They use a computer chip to hold information instead of a magnetic strip. The data in these cards is substantially more difficult to breach. For example, when Europe adopted this standard credit card fraud fell by nearly forty percent in a year and more than ten percent the next year. From the viewpoint of profitable investing, where is the profit in the Target security breach and EMV cards? What needs to happen to switch the largest economy in the world over to EMC cards and who will profit?
The Cost of Switching to EMV and ATM Manufacturers
By comparison there are more than four hundred thousand ATMs, two million payment card terminals, and six hundred million credit and debit cards in use in the USA. If the system decides to deal effectively with the Target security breach and EMV cards become the norm all of this must change. A likely scenario will be that all new cards will be EMV. Card issuers may be mandated to replace existing cards with EMV on a routine basis. ATMs need to be modified. However, according to Triton Systems, this can be done in the field with a replacement package. A fair estimate is that it would cost financial institutions $8 Billion to make the switch to EMV capable machines and accomplish all other details of a switch to EMV.
2. As many as 40 million credit and debit cards were
compromised recently when hackers breached
security of Target Corporation, TGT.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
3. Target customers are changing pin numbers, canceling
cards, and using cash.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
4. We are thinking about investment opportunities related
to this fiasco, the connection between the Target
security breach and EMV cards.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
5. What fundamental analysis does one need to do to
profit when the USA switches to EMV cards?
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
6. The intrinsic value of stock is its forward looking
income stream and if the USA switches over to EMV
cards that is a lot of money.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
7. Information on a
Debit or Credit Card
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
8. The type of magnetic strip credit or debit card used in
the USA contains encrypted PINs, customer names,
credit and debit card numbers, card expiration dates
and the embedded code on the magnetic strip on back
of the card.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
9. Possession of this information could allow a thief to
withdraw money from a bank account, engage in
identity theft and generally make the life of the victim
miserable.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
10. While the type of card used in Europe contains the
same information it uses a different technology.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
11. The Target security breach and EMV cards are not
compatible.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
12. That is to say this would probably not have happened
if the USA had gone to the EMV card years ago.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
14. EMV stands for Europay, MasterCard and Visa. EMV
is a global standard for inter-operation of integrated
circuit cards.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
15. These are also called IC cards or chip cards.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
16. They use a computer chip to hold information instead
of a magnetic strip.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
17. The data in these cards is substantially more difficult to
breach.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
18. For example, when Europe adopted this standard
credit card fraud fell by nearly forty percent in a year
and more than ten percent the next year.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
19. From the viewpoint of profitable investing, where is the
profit in the Target security breach and EMV cards?
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
20. What needs to happen to switch the largest economy
in the world over to EMC cards and who will profit?
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
21. The Cost of Switching
to EMV and ATM
Manufacturers
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
22. By comparison there are more than four hundred
thousand ATMs, two million payment card terminals,
and six hundred million credit and debit cards in use in
the USA.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
23. If the system decides to deal effectively with the Target
security breach and EMV cards become the norm all
of this must change.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
24. A likely scenario will be that all new cards will be EMV.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
25. Card issuers may be mandated to replace existing
cards with EMV on a routine basis.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
26. ATMs need to be modified.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
27. However, according to Triton Systems, this can be
done in the field with a replacement package.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
28. A fair estimate is that it would cost financial institutions
$8 Billion to make the switch to EMV capable
machines and accomplish all other details of a switch
to EMV.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
29. Changes
Are on the Way
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
30. Companies that make ATMs, maintain them, and do
programming will benefit when the USA makes the
shift to EMV cards.
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
31. Here is a short list of the companies that could
prosper:
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
32. ATMGurus
Better ATM Services, Inc.
Burroughs, Inc.
Diebold, Incorporated
Elan Financial Services
Gremaldo
NCR Financial Solutions
Triton Systems
http://www.profitableinvestingtips.com/stockinvesting-tips/target-security-breach-and-emv-cards
