Feeds

US bank approves ripped-up credit card application

Follow the money

Top 5 reasons to deploy VMware with Tegile

A US man who sent in a torn up, and taped back together, credit card application as an experiment to see whether he needed to shred his applications has received a credit card. Rob Cockerham used his father's address and his mobile (as opposed to land line number) when making an application for a JP Morgan Chase credit card.

A spokesman for Chase described the experiment as an internet prank. He insisted that Chase takes fraud seriously and pointed out that the bank was obliged to process credit applications, whatever condition they are received in. Applications that arrive in damaged form are transferred to an electronic format, he told MSNBC. Common sense would suggest that a taped up application would arose suspicion if handled by a human but Chase maintains Cockerham's application was properly approved, presumably because the details of the address he gave referred to a previous residence.

It's easy to imagine a fraudster submitting a torn up application but from the point of view of credit card companies, if not consumers, the risk is worth it, as net security guru Bruce Schneier points out.

"All other costs and problems of identity theft are borne by the consumer; they're an externality to the credit card company. They don't enter into the trade-off decision at all," Schneier writes. "We can laugh at this kind of thing all day, but it's actually in the best interests of the credit card industry to mail cards in response to torn-up and taped-together applications without doing much checking of the address or phone number. If we want that to change, we need to fix the externality." ®

Intelligent flash storage arrays

More from The Register

next story
Knock Knock tool makes a joke of Mac AV
Yes, we know Macs 'don't get viruses', but when they do this code'll spot 'em
Shellshock over SMTP attacks mean you can now ignore your email
'But boss, the Internet Storm Centre says it's dangerous for me to reply to you'
Why weasel words might not work for Whisper
CEO suspends editor but privacy questions remain
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.