President Obama signed an executive order Friday to improve security measures for government credit and debit cards, equipping them with microchips in place of the standard magnetic strips and PINs. Obama discussed the new order during remarks at the Consumer Financial Protection Bureau Friday.
"Last year . . . more than 100 million Americans had information that was compromised in data breaches in some of our largest companies," said Obama, referring to high-profile security breaches at Target and Home Depot. "Identify theft is now America's fastest growing crime. These crimes don't just cost companies and consumers billions of dollars every year, they also threaten the economic security of middle class Americans who worked really hard for a lifetime to build some sort of security."
"The idea that somebody halfway around the world could run up thousands of dollars in charges in your name just because they stole your number or because you swiped your card at the wrong place at the wrong time—that's infuriating," said Obama. "For victims it's heartbreaking. And as a country we've got to do more to stop it."
Obama highlighted the efforts of Home Depot and Target to secure their systems after being hit by breaches this year. They will join Walmart and Walgreens in installing chip and PIN technology in all their stores, most by the beginning of next year. Obama also noted that the Federal Trade Commission will develop IdentityTheft.gov for victims to aide the reporting and remediation process with credit bureaus.
"Identity theft has been American consumers’ number one complaint for more than a decade, and it affects people in every community across the nation," said Federal Trade Commission Chairwoman Edith Ramirez. "I welcome the opportunity for the Federal Trade Commission to participate in this new initiative advancing efforts to address this insidious problem on behalf of consumers.”
The White House also called on Congress to pass data breach and cybersecurity legislation. "The current patchwork of laws governing a company’s obligations in the event of a data breach is unsustainable, and helps no one," wrote the White House in a statement.
-- With reporting from Sam Frizell