Challenges and Solutions to Appling Economics in ___________(the information security issue of your choice)"

Challenges and solutions to applying economics in Credit Card fraud. Student`s name Student`s number Institutions name Introduction. There has been an unprecedented increase in credit card fraud. Many people have suffered huge losses occasioned by fraudsters accessing their accounts using secret information like PIN numbers of the victims which are fraudulently got. This issue has placed banks and other financial institutions on collision paths with their clients. Multiple law suits have been filed in various jurisdictions as claimants seek to recover their lost money. However, the rates have taken a downward spiral after banks began being liable for card fraud affecting their clients. Economics perspective in the issue. Card security is a private good (Tilman, 2009) which can be excluded from non users through the development of effective technology. This will place the issue in the hands of beneficiaries like customers and the banks. It enables these beneficiaries to put in place measures that will reduce the vice from occurring through investment in chip technology. The customers can be made to pay more for the implementation of such a project. The customers will benefit from reduced risk that will result from card transactions. This will lead to maximization of benefits of convenience that come with the use of universally accepted cards. The implementation of advanced security features on the cards will lead to increased rivalry among service providers in the industry to offer the services. Many security companies will want to do business with the banks. This competition will lead to improvement of the features since security companies will want to be seen to offer the be...