Lawmakers in California are taking a hard look at the growing problem of credit card fraud in the state. The state Assembly Banking and Judiciary committees held a joint hearing today to hear from officials about credit card hacking. Officials with the California Retailers Association say credit card shoppers could have their personal information protected by upgrading the country's entire payment system. Credit card fraud has increased 87 percent nationwide since 2010.
All of the major segments of the credit card and payments industry are switching to what's called a "chip-and-pin" system this October, which the CRA believes will eliminate a great deal of fraud. Under the new system, computer chips embedded in cards will be used for purchases instead of magnetized strips.