In a report released yesterday by Javelin Strategy and Research, credit card fraud became the number one form of identity theft. In 2009, credit card fraud accounted for 75% of all identity theft cases, according to the study.

This is up 12 percent from 2008, when credit card fraud made up 63% of all identity theft. Credit card fraud also costs consumers 12% more in 2009 accounting for $54 billion, topping the 2008 number of $48 billion.

We can stop credit card fraud by adopting more secure payment methods and upgrading our card technology. American consumers are at risk because the credit card industry in the U.S. practices a culture of detection and not prevention.  The banking and credit card sector in the rest of the world has adopted secure chip and PIN credit cards that protect personal information and prevent fraud. Chip and PIN reduces fraud because the secure chip based credit and debit cards require the cardholder to authenticate themselves with a PIN code at the point of purchase.  By 2011 chip and PIN will be used in all G-20 countries, except the U.S. to reduced fraud in the payment system. Organized crime, fraudsters and terrorists know the U.S. is lagging behind the rest of the world and has no plans to deploy secure payment systems using chip and PIN.  Unless we upgrade our credit and debit card technology, 2010 will prove to be another record year for ID fraud of US consumers.