Posted on 02/06/2017 2:08:48 PM PST by Red Badger
It’s a tiny chip that elicits big opinions.
Meant to protect customers from credit card fraud, most cards now have security chips, and many businesses bought the chip readers to go with it. But more than a year after they became common place, research shows that identity theft is actually up.
“With all the credit card hacking and privacy invasion, I think it’s a fantastic idea,” said one consumer.
Not so, said another. “It holds you up. It’s annoying.”
Consumers and businesses switched to the chip-based cards and readers 16 months ago to deter theft. But a study released this week from Javelin Strategy and Research found that identity fraud cases rose 16 percent in 2016, which equates to 15.4 million new victims – a record high. Lane Conner, founder and CEO of credit card processor Fuze said the chip rollout was bungled from the start, in part because it was supposed to require a pin – not just a signature.
“The real security was supposed to be the pin and actually putting your pin in when you actually dip the card,” he said. “A bad guy could just as easily steal your wallet, go and dip a credit card into a machine and sign for it like they’re you as you could swiping a card.
He also said the increase in e-commerce is to blame, since online shopping offers virtually no credit card protection. For business owner kory helfman of ken’s man’s shop, the spike in fraud cases is concerning.
“It scares me as a business owner, not only for our store but also for our clientele. No one wants to come under any kind of fraud,” he said.
But overall Conner is comfortable with the protection the chip readers gives. And that’s a good thing given the chip is here to stay.
“As badly as it was done, the ship has sailed on ever going back to swiping cards,” said Conner.
We may get pins later on.
I think that’s advisable. I would like to see the strips gone.
I think that defeats the purpose.
Still, this is a roll out, and I don’t think it’s unusual to see it play out in steps.
I suspect it will be different in a few years.
I think the chip helps from your credit card being used by someone else. Who really cares? It still doesn’t keep someone from stealing your identity. This is the problem.
Thanks, I will send this to a couple younger (they think that they are bulletproof) relatives.
Target with its lack of data security pushes its own debit card.
Exactly.
I suspect my bank account was hacked a year ago come may after Target servers were hacked Dec 2015 and some hacker got my debit account info from the millions of account they stole.
The bank caught the transactions they did the same day and the card was cancelled.
If the internal servers are hacked then there is nothing you can do but get a new card.
True rhat
>>Without the associated PIN it is useless
That’s funny - because I regularly make purchases with a chipped card, and I’ve NEVER been asked for the PIN.
In the old days before credit cards it wasn't called bank fraud....it was called robbery ..they just stole your cash
That’s because the software has not been rolled out
It has always been known and anticipated that use of the chip would lead to more online fraud, because it makes some types of old-fashioned fraud more difficult. At least that was the experience in Europe, when the chip was adopted, and so they anticipated that the same would happen here.
What they did was shift the fraud cost and responsibility onto the retailer if they didn’t upgrade to the chip. That’s why so many retailers have moved to it.
>>That’s because the software has not been rolled out
LOL. You’re FOS.
“Without the associated PIN it is useless”
—Nifster
FALSE.
With the exception of mail order stuff, I haven’t made an Electronic Transaction in person in Years and use CASH for everything.
I was never fond of the idea of having all my info being bought,marketed and sold like a $2 whore
Actually no I am not. Some credit cards actually ask for the PIN. Not all do.
I went through the roll out. Did you? As a worker not as a customer?
Yep, you’re FOS.
One of the benefits of the cards is that they can’t be spoofed like mag cards can.
Thus, your assertion is - FALSE.
Right, they did.
The article and the comments are that without the pin, the chip is not much better than swiping a magnetic stripe. The real added security from having the chip comes only if the pin gets used with it.
So I’m suggesting a small nuisance fee to encourage card holders to start using their pin. But because of people like me who never bothered remembering their pin, they shouldn’t force using the pins immediately. They need to change behavior. A graduated nuisance fee can do that.
Correct. The chip is great. The chip without a pin is worthless. Perhaps worse than a swipe card.
Correct. I had 20 thousand dollars charged to my swipe credit card by fraud. Apparently I took one hell of a vacation in France in two hours while I was in Harker Heights, Texas. Master Card made it all good. Thank you Master Card.
The real hell of it is today with a chip the same thing could happen without a required pin. The chip is no safer than the swipe card unless the chip requires a pin.
Relative to Master Card despite repeated phone calls and letters they gave me zero information about where the fraud occurred. I think it was at a local chain drug store. I went in and bought some items. An hour later I went into Walmart and had my card declined due to my card being maxed out. I was not happy.
The local chain drug store is a very reputable and I suspect it was an employee that did the fraud. They were pros. In one hour they had charged 20 thousand dollars in increments of 2500 at a time.
I suspect Master Card would give me no information as they were afraid I would stick a 1911 in someone’s face. They may have been right.
Hey noob...you have not done your homework. You didn’t even bother to read the article. And unless you are claiming that you are part of the chip IT workers then you can go back to your troll hut
I checked with my banks. No such fee from any of them.
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