This article examines the Fair and Accurate Credit Transactions Act (FACTA) and why it is ineffective in preventing credit card fraud and identity theft, as well as more systemic data security breaches. The problem with FACTA as it relates to credit card fraud and identity theft is that it requires printed receipts to not include the expiration date, however, according to security experts, an accurate expiration date is not always required to complete a transaction. Also, the statutory damages for violations are unnecessary due to federal laws limiting a cardholder’s exposure. Also, as the law reads currently, a person does not have to damages to bring about a lawsuit. The article then reviews new legislation that was introduced to correct FACTA’s failings and what credit card companies are doing to address data security issues.
Source: Executive Counsel