Credit card security is lax because of the consumers. They want convenience and aren't worried about "A few bucks." After all they are only liabel for a minimal amount if their card is lost or stolen. Very few people either know or care about the amount of money that is stolen by credit card loss or forgery, but they would if they realized how it effected the cost of their cost of merchandise.

I am actually worried about a newer electronic fraud technique called "Transaction Theft" and the effects it could have on the credit card industry which is transaction based.