The fact that the US is finally shifting to credit cards that are embedded with anti fraud computer chips does not mean that there will be a reduction in crimes related to theft from credit or debit cards. In fact, an increase in fraud is more likely to occur.
United States is currently the last developed country to phase out credit cards that use the traditional magnetic strip and use the EMV chip based technology.
The EMV is an abbreviation for Europay, MasterCard and Visa. These three companies collaborated to come up with a standard security chip that makes committing counterfeit nearly impossible.
Although fraudsters and experts of cyber crime will not use the traditional methods of stealing via electronic money, they are most likely to come up with new, sophisticated methods of committing crime. Online fraud expert Brian Krebs believes that fraud will always be part of this system, with the only difference being that this time it will be present online.
The advancement of technology in our daily lives has switched all our routine tasks to the virtual world, allowing online fraud rings to access important information such as credit card numbers, expiry dates on them and this is the type of information that can be used online effectively.
The lack of utilization in the EMV technology by October 2015 is likely to spike up the fraud rate and in turn, card issuers and retailers will become liable for the losses occurred due to credit card fraud. In order to overcome a situation like this, number of retailers are installing or upgrading their terminals so that they are adaptable to the EMV technology.
Experts have forecasted that about 70% of the US cards are most likely to be embedded with the EMV technology. Consumers need not worry that much about getting these cards as retailers and issuers will send them the new cards in mail. The change that occurs in the use of these cards is simply the fact that instead of swiping the card, it will be inserted in an EMV adaptive card reader.
These experts also believe that most merchants in America will use the conventional security methods of technology to overcome fraud while others are more likely to implement systems based on the latest technologies that not only act as a security measure, but also provide a greater insight into customer behavior to assess false positive cases.
Overcoming fraud in the transition or migration from magnetic strips to EMV will require additional layers of security and perseverance. Something to think about is that since US is the last developed country to implement the EMV, it can learn from Fthe online frauds committed in other countries like Brazil, Europe, etc and design security systems accordingly.
Senior Vice President of product delivery for EMV at MasterCard, Carolyn Balfany is also of a similar opinion, believing that the US stands a better chance of overcoming credit card fraud due to the presence of security systems already in place, giving US a better chance to “accelerate” this migration from magnetic strip cards to EMV in credit cards.