Tech Bytes: Three Takeaways From the Cybersecurity Summit

The White House recently hosted a daylong Summit on Cybersecurity and Consumer Protection at Stanford University. Speakers ranged from President Barack Obama to Apple CEO Tim Cook to Walgreens president Alex Gourlay). Here are a few takeaways.



Retailers Recognize Chip and PIN

Gourlay stressed that chip and PIN technology, which uses an embedded computer chip and a PIN number to encrypt payment card data, is the best means of securing personal customer details at the point of sale. Walgreens is completely enabled for both online and offline chip and PIN transactions, which means it has already met the October 2015 deadline for compliance with EMV payment card regulations.



U.S. financial institutions have been promoting chip and signature technology, which also uses an embedded computer chip but only requires customer signature, rather than a PIN, for EMV-compliant cardholder verification. Whatever reasons financial institutions have to support chip and signature, it seems that retailers understand chip and PIN offers more security.



Whether retailers smaller than Walgreens can afford to make the extra investment in chip and PIN systems, or accept the resulting reduction in transaction speed, remains to be seen.



Mobile Payment – Retail is the Beginning

Purchasing goods from retailers may seem like the logical function of mobile payment systems such as Apple Pay. However, Cook made it clear that Apple has plans for mobile payment that go far beyond streamlining retail checkout.



Along with making Apple Pay available for many federal government transactions, Apple is also working on making Apple Pay compatible with cards issued to government employees for their expenses, as well as compatible with Social Security and veterans pensions.



“In the future, it would be great to have personal identification like your passport and driver’s license digitally stored in a way that is safe, secure, and easily accessible by you,” added Cook.

This represents a major expansion of the idea of a “mobile wallet.” And it helps retailers in two key ways. First, the more consumers use a technology in their everyday lives, the more they use it in a retail setting. Look at the rise in mobile commerce as smartphones and tablets have become the preferred means for consumers to stay (constantly) connected.



Second, easily accessible mobile personal identification, such as driver’s licenses, would make verifying pay-in-advance transactions much easier and faster. Buying online and picking up in store would take on a whole new level of convenience on both sides of the transaction.



We’re In It Together

In his address during the summit, Obama made it clear that he sees safeguarding the security and privacy of consumer data as a shared responsibility of government and business. On the government side, Obama called for the passage of a single national standard requiring consumers to be notified within 30 days if their financial or personal data is stolen. He also called for a Consumer Privacy Bill of Rights that will let consumers decide what data companies can collect and how they can use it.



However, Obama also called for businesses to secure their own networks and share information on cyberattacks. When the government decides it’s your partner in an effort, you have a new partner and a new effort, whether you want them or not. Retailers need to understand they have entered a new age of payment security where all the stakeholders must cooperate and align their efforts for everyone’s benefit, especially the consumer.