Chip Cards Fail to Reduce Credit Card Fraud in the US
A new study finds that credit card fraud has not declined since the introduction of chip cards in the US. The majority of stolen card information comes from hacked point-of-sale terminals.
The reasons seem to be twofold. One, the US uses chip-and-signature instead of chip-and-PIN, obviating the most critical security benefit of the chip. And two, US merchants still accept magnetic stripe cards, meaning that thieves can steal credentials from a chip card and create a working cloned mag stripe card.
Boing Boing post.
Tyler B. • November 15, 2018 7:04 AM
I was under the impression that the current generation of cards was primarily a transitory tech given that the magstripe is still present. Until we remove that magstripe I’d think the chip’d cards were only marginally more secure, but for sure chip+pin is the way to go.