Some banks powerless against credit card fraud attacks

Some banks powerless against credit card fraud attacks. Credit card skimming, in which thieves attach a device that reads and stores all information to a normal card reader, then uses it to compile fraudulent credit card debt in other peoples' names, has become a new trend among criminals, according to a report from Information Week. The U.S. Secret Service estimates that such scams have cost businesses and consumers $8 billion this year alone.

There's currently little banks can do short of canceling the stolen cards and issuing new ones to victims, the report said. However, in the near future, many issuers will begin distributing a new type of card that allows greater authentication methods when a consumer wants to take on credit card debt to make a purchase.

The most likely kind of card that could be distributed is one that stores consumer data on a microchip rather than a magnetic strip, and requires a PIN before it will allow the user to take on more credit card debt.