Decoupled Debit Lauded For Security In Wake Of Target Breach

In the wake of the Target data breach, many experts were wondering whether decoupled debit cards would lose consumer trust and fall out of favor with merchants due to their vulnerability to fraud.

However, a new report from American Banker suggests Target’s decoupled debit cards are proving to be more secure than other alternatives. Speaking with fraud experts, the media outlet indicates that Target’s Redcard debit cards are not likely to fall victim to misuse from fraudsters.

“Skimming the 16 digits on Target’s proprietary decoupled debit Redcard will probably not even be pursued by the fraudsters who captured that number because it can only be used inside Target,” Richard Crone, chief executive of consulting firm Crone Consulting LLC, explained to the media outlet. “The proprietary Target card represents another reason merchants may want their own card because it can mitigate risk, too.”

Target would not formally comment on whether its Redcard debit cards were less likely to fall victim to fraud, nor is any data yet available to support this assertion.

For more on Target’s recent meeting with state prosecutors, click here.

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