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"Compared to the tens of millions of transactions that are taking place every day, even the fraud that they have to pay for is small compared to the profit they are making from using less secure cards."
Even so, there are a few things retailers can do, too, to better protect customer data. The most vulnerable point in the transaction network, security experts say, is usually the merchant.
"Financial institutions are more used to having high levels of protection," says Pascual. "Retailers are still getting up to speed."
The simple, square, card swiping machines that consumers are used to seeing at most checkout counters are hard to infiltrate because they are completely separate from the Internet. But as retailers switch to faster, Internet-based payment systems they may expose customer data to hackers.
Retailers need to build robust firewalls around those systems to guard against attack, security experts say. They could also take further steps to protect customer data by using encryption, technology which scrambles the data so it looks like gibberish to anyone who accesses it unlawfully. These technologies can be expensive to install and maintain, however.
Thankfully, individual customers are not on the hook for fraudulent charges that result from security breaches. But these kinds of attacks do raise costs -- and, likely, fees for all customers.
"Part of the cost in the system is for fraud protection," Oxman says. "It costs money, and someone's going to pay for it eventually."
© 2014 Associated Press under contract with YellowBrix. All rights reserved.