In reply to Milos.

First, it is important to say thank you, Milos, for the great balanced analysis in the article that you have provided.

I agree with the approach and the analysis even though I may not agree with the solutions proposed and I know you were just intending to provide examples of what could be do and there is shortage of that if someone just is willing to step away from the blame game to the step of solving the issue and it is a very real issue.

Second I would say, I like the article that Karen provided here but I do not think I am in agreement as the arguments were meant to drive the reader to believe that this is not a real issue while in fact it is one that need to be examined and rectified.

The issue is not that Apple or Banks or the Payment networks that brokered the solution are at fault, that is no big deal as every one does mistakes and it is important to acknowledged the mistake and fix it and move on to the next level.

Pushing this under the rug means that this issue is not going to be solved and imagine if this issue impacts only the Yellow path for Apple, what would happen to Samsung as they have no other options other than yellow paths.

Also keep in mind that the bank are the one responsible for the financial loses over here. The consumer is protected with the zero Liability and the merchant are protected with card present transaction, the payment networks get their cut, Apple most likely will get theirs and the only one that will pay for it are the banks as a penalty for them for not doing the extra homework measures or requesting from Apple to do the extra work as well.

It is important not to play the blame game as it is non-productive. Yes Apple could have done more, they are the experts in controlling their eco-system. Yes, the banks could have done better if they were prepared to take the right measures. I cannot blame the payment network either as they have no experience in dealing with consumers or enrollment process and if any one remembers the last attempt in consumer enrollment in 3D Secure you will see that we had the same issue, high fraud due to lack of anticipation of what the bad guys would do. In summary it is not the first time nor it is the last

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=19&cad=rja&uact=8&ved=0CFMQFjAIOAo&url=http%3A%2F%2Fwww.cl.cam.ac.uk%2F~sjm217%2Fpapers%2Ffc10vbvsecurecode.pdf&ei=6G_-VPz4EcWtogSipoFY&usg=AFQjCNHwk3YFm3H3sgrgqAQDdRZguWWzlw