FBI Warns That New Credit Cards May be Vulnerable to Exploitation by Fraudsters

by Sarah Grotta 0

The conversation about EMV continues even after the October 1, 2015 liability shift date. The FBI issued a press release from their San Diego branch reminding consumers and merchants that EMV will not solve all payment fraud issues:

Although EMV cards provide greater security than traditional magnetic strip cards, an EMV chip does not stop lost and stolen cards from being used in stores, or for online or telephone purchases when the chip is not physically provided to the merchant, referred to as a card-not-present transaction. Additionally, the data on the magnetic strip of an EMV card can still be stolen if the merchant has not upgraded to an EMV terminal and it becomes infected with data-capturing malware. Consumers are urged to use the EMV feature of their new card wherever merchants accept it to limit the exposure of their sensitive payment data.

After the industry has spent billions to up-grade to the new technology, the FBI offer some decidedly low-tech suggestions to help consumers defend their card credentials:

Consumers should closely safeguard the security of their EMV cards and PINs. This includes being vigilant in handling, signing, and activating a card as soon as it arrives in the mail, reviewing statements for irregularities, and promptly reporting lost or stolen credit cards to the issuing bank. Consumers should also shield the keypad from bystanders when entering a PIN, as PINs are vulnerable to cybercriminals who work to steal these numbers to commit ATM and cash-back crimes

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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