Periodik Labs

Judge Richard Kramer San Francisco Superior Court doesn't think that people who have had their identity stolen need to know about it: "I don't see the emergency," he said. It seems that Judge Kramer has never had his identity stolen. The ruling stating that Visa is not responsible for notifying cardholders is based on a technicality. Because consumers are not not direct customers of Visa — they are customers of the bank that issued the card — it's the bank's responsibility to tell them that their identity has been compromised.

Fortunately for consumers, the CardSystems case involves the theft of credit card numbers, not additional identity information such as social security numbers, meaning any damage caused is likely to be easily reversible. As the article points out, the real losers are the merchants who unwittingly accept the stolen credit cards. They will be left on the hook for the cost of the goods sold. That's the way it works with the credit card companies: they claim to protect you from liability from fraudulent charges, but the cost is really borne by merchants.