Obama announcing plan to tighten security for debit cards used for federal benefits

Economic Indicators Associated Press

President Barack Obama is announcing a government plan to tighten security for the debit cards that transmit federal benefits like Social Security to millions of Americans.

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Cards issued by the federal government will now have an internal chip replacing magnetic strips to reduce the potential for fraud, under the program being unveiled Friday. Concern is growing over the security of Americans' financial data, with an estimated 100 million people having been affected by breaches in the past year, including at big retailers like Target and Home Depot.

The White House says the idea of the government program is to lead by example, to nudge the broader financial industry toward more secure standards.

Obama will announce the plan at the offices of the Consumer Financial Protection Bureau.