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New Microchip Credit Cards Will Keep Banks Safe But Will They Do The Same For You?

Tuesday, June 24, 2014 - 8:24 AM
From Yahoo Finance:
Chip cards offer you no more security online than a magnetic strip card does. Even the cards themselves aren't completely fraud proof. After the Target breach last year security journalist Brian Krebs told NPR the chip cards "simply raises the costs for the bad guys...It's not that they can't break the system — but it makes it more expensive for them to fabricate these cards." Regardless, you'll soon be seeing a lot more chip cards across the U.S.

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5
pearlbrownpearlbrown1,436 posts since
Nov 2, 2010
Rep Points: 6,264
1. Tuesday, June 24, 2014 - 8:44 AM
“Credit card hacking is increasing in frequency in the United States, partially because we are one of the few remaining countries to adopt more [secure] chip and PIN technology,”
- Andrew Szente, vice president for government affairs at the Retail Industry Leaders Association (RILA)

Can New Technology Make Credit Cards Safer?

EMCVoice: Can New Technology Make Credit Cards Safer? - Forbes
6
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,208
2. Tuesday, June 24, 2014 - 9:59 AM
From Yahoo Finance:
Chip cards offer you no more security online than a magnetic strip card does. Even the cards themselves aren't completely fraud proof. After the Target breach last year security journalist Brian Krebs told NPR the chip cards "simply raises the costs for the bad guys...It's not that they can't break the system — but it makes it more expensive for them to fabricate these cards." Regardless, you'll soon be seeing a lot more chip cards across the U.S.
A card WITH A PIN is significantly more secure. At the moment a stolen card can be widely used and a chip card without a PIN could be also. Add the PIN and it becomes a whole new problem for the thief. There were massive fraud reductions in Europe when it was introduced. It was introduced in the UK in 2004, so we are only 10 years behind! Unfortunately it does not help with customer not present transactions.

In all the discussion here it is often not clear whether it is about just chip cards, which are much more difficult to clone, or chip and PIN, which is where an additional significant security  benefit comes.
2
MidAtlanticMidAtlantic24 posts since
Jun 5, 2012
Rep Points: 108
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