Final answer:
Merchants must comply with the Payment Card Industry Data Security Standard (PCI DSS) to handle cardholder information securely. To prevent fraud, they should collect only necessary data, control access to it, and monitor for breaches. Consumers can contribute by protecting their cards, wallets, mail, and using strong passwords.
Step-by-step explanation:
Merchants that handle cardholder information for debit, credit, prepaid, e-purse, ATM, and POS cards must be in compliance with the Payment Card Industry Data Security Standard (PCI DSS). This is a set of security standards designed to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment. The PCI DSS is a vital requirement for protecting cardholder data and preventing card fraud.
There are numerous steps that both merchants and consumers can take to protect cardholder information. For consumers, it's essential to protect your credit and debit cards, protect your mailbox, and protect your wallet. Using strong passwords and PINs that cannot be easily guessed, using anti-virus software on your computer, and notifying your bank when changing your address or phone number are practical measures to safeguard personal financial information.
In addition to individual efforts, merchants must adopt measures to protect cardholder data. They are responsible for keeping minimal information required for transactions, understanding why certain information is being collected, and ensuring the access to such data is strictly controlled. Monitoring credit histories for unauthorized activities is also vital for identifying potential breaches. With the rise of online shopping and digital transactions, the importance of online privacy and security has become a key organizational concern. Large-scale data breaches highlight the ongoing threat of identity theft.