The Target credit card breach makes a strong argument for Bitcoin and CryptocurrenciesSubmitted by number6 on Sun, 12/22/2013 - 14:22
I know the financial system is up to no good absolutely. However, this Target breach and the controls many banks have put on the affected cards don't seem hinky to me, they seem completely prudent.
Something that many Bitcoin skeptics don't realize is that most money transactions are done via the CIRRUS, VISA, MC, AMEX payment networks now (Debit or credit). These systems are ridiculous and insecure in their design as compared to Bitcoin. Companies spend literally MILLIONS of dollars each to secure PCI data (credit card data), not counting the fees that the card brands and processors get back (typically 1-3%, sometimes up to 8% - liquor stores!). Bitcoin is essentially free by comparison.
Go read the blow by blow articles about this breach here: http://krebsonsecurity.com/
The breach of Target got 40 Million cards!!! This would be the largest breach of credit cards in history!
Not only did the attackers get the card swipe, and CVV code (if entered by cashier), they got the pin code from anyone stupid enough to run debit transactions at a store. The scale of this breach is really the problem. Fraud committed on cards will simply overrun the fraud detection and prevention systems. The banks can't reissue millions or hundreds of thousands of cards that quickly, especially over Christmas. They're screwed, it's that simple.
The cards are already for sale on the net for about $100 each. Because idiots use debit transactions at POS (point of sale) the banks, networks and merchants are scrambling to try to prevent fraud. For credit transactions, the merchant is liable, for debit, the bank and or account holder is liable. So any bank, credit union etc. who has seen their cards on the internet marketplace for sale, they can reasonably suspect fraud is coming, and they're trying to stop it the best they can. Hence the debit withdrawl limits.
If you're really concerned, go pull cash out from the teller.
This breach says more about the insanity and abject failure of the merchant and credit card system than anything else. Really it's a very strong argument for Bitcoin. The credit card money system is an expensive mess. It's expensive for the merchants, and expensive to the customers since the costs must be passed through. This just demonstrates alternatives like Bitcoin aren't just useful, they're absolutely necesary. Oh, and it seems Target screwed up royally somewhere.
The use of a secure crypto currency like Bitcoin instead of credit cards could reduce the cost of everything you buy by 5-15%. Imagine keeping 5-15% more money... That would be nice huh?