US banks and merchants are shifting to a more secure way of authorizing credit card transactions in which customers will enter a personal identification number (PIN) at checkout instead of signing a receipt. The US is the last major market in the world using the signature system, which is part of the reason why a disproportionate amount of credit card fraud happens here. The change is especially relevant given the massive fraud perpetrated against customers of Target in the fall. During a Congressional hearing last week, Target CFO John Mulligan said the company is accelerating the $100 million effort to switch to the so-called chip and pin system.
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