Visa, MasterCard Respond To Hacker

In response to a major incident in which a hacker stole thousands of credit card numbers over the Internet, Visa U.S.A. says it will focus efforts on its member institutions and merchants, rather than on wide-scale communications with cardholders. "E-commerce is still safe," a Visa spokesperson says, noting that fraud has dropped to 7 cents for every $100 in transactions, down from 22 cents five years ago. Though Visa believes current consumer security education is sufficient, the association will take a hard look at stepping up Internet merchant security education initiatives. "We will make sure merchants know what is available to them," he says. "We will compile brochures and visit key merchants." Meanwhile, Purchase, N.Y.-based MasterCard International released a statement saying it has notified its members of the accounts involved so that they may monitor them on a fraud watch. MasterCard also endorsed the SET Secure Electronic Transaction protocol, noting that the encryption technology would prevent this type of crime.