Data is protected by those tiny new chips attached to credit cards making it difficult for thieves to steal it. Credit card fraud is still on the rise and will probably change after the adoption of the new technology, known as EMV.
A new change in the responsibility for who is to pay for credit card fraud issues a strong necessity for card issuers and business people to adopt the EMV technology. This technology is designed to reduce credit card fraud, but a new study concludes that credit card fraud is likely to increase. Here’s more about the EMV technology and hoe one could protect themselves from credit card fraud.
HOW EMV WORKS AND WHAT IT IS
A credit card with an EMV chip is one having a chip’s silver or gold foil cover at the front of the card is more secure compared to the traditional magnetic stripe card. (EMV is abbreviation for Euro pay, MasterCard and Visa, the three companies that came up with the standard.) While magnetic stripe cards have static payment information that can be transferrable from one card to another, the EMV technology adds a bit of transparency to the payment process.
“EMV chips comes with a unique payment code with every use so that if any thieve was unable to get your payment credentials, it would be worthless at any purchase,” says Sean, EMV credit card expert and retired visa strategy analyst.
As most businesses install the new EMV ready terminals, card duplication will concentrate on stations still using the traditional swipe card. “This is the reason we warn customers to be cautious any time they need to swipe a card after the full introduction of the EMV technology,” Sean says.
The Limitations of EMV Technology
Card issuers take responsibility for most card fraud cases. From October, the responsibility will now turn to whichever party to a transaction that the issuer or business isn’t using the EMV technology, a change known as “liability shift.” This shift will give the two parties a lot of incentive to adopt the technology, EMV compliance is not a must as both parties need to upgrade to keep secure payments.
“EMV is powerful and effective if business people and consumers are ready and willing to use it for transactions. Consumers are in need of chip cards while business people need chip readers,” Sean says “if only consumer side is upgraded, then the upgrade is a waste.”
With the coming of the EMV technology for individual transactions, card fraud is expected to only be experienced in transactions where the card doesn’t need to be used such as mobile or online purchases.
In the United Kingdom, card fraud rates rose rapidly especially the “card not present” fraud has been on the increase since EMV adoption back in 2005. Card not present fraud in the United Kingdom rose 120% from 2004 to 2014. The same is expected in the USA after the EMV technology is fully adopted.
Learning how to use your chip will help keep your transactions safe. The new terminals are even simple for use: insert your card into the payment terminal, follow the terminal’s instructions, and remove the card after when the receipt is printed.
After October, buying only from merchants that have upgraded to the EMV technology is advised. This is because thieves will likely target merchants without EMV technology this time. Online shopping will not be improved by the EMV technology though, so it’s important to stay vigilant.
“EMV chips are only used in the real world when they are used at the terminals with chip readers,” Sean says “for those purchasing online, it up to the online retailers to protect your card and card data.”
To avoid online scam, try not shopping at unsecure and unfamiliar websites. Secure websites have an “https” at the beginning of the webpage address and not the “http.” It is strongly advised for people that have their card data stored online to frequently change passwords regularly and never to send their card data via email or social media.
The EMV technology is expected to reduce card fraud; it will be the liability shift in the USA which may also result in the increase in fraud in online shopping and other card not present transactions. To keep data secure, one will have to learn how to use the EMV chip for individual purchasing in terminals that have the EMV chip reader. Also individuals should avoid sharing their card data and practice online shopping only at secure sites.