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Slow PIN Cards Adoption Exposes US to Credit Card Scammers

Slow PIN Cards Adoption has exposed US to Credit Card Scammers: Credit card fraud is multiplying fast in the United States of America. NASDAQ, a global electronic marketplace benchmark index for US technology stocks spearheaded a study which showed fraud incidents tripling from 2013 to 2014. A lot of professionals in this field believe that America is specifically susceptible on account of being late in, and fully adopting EMV standards technology, also known as chip-and-PIN technology.

A speedier conversion to slow PIN cards will undeniably slow some types of credit card fraud, but other forms of credit card theft are already coming out.

NASDAQ Estimates

NASDAQ approximates that a card-not-present fraud will result to twice its current amount, which is $3.5 billion. Application fraud on the other hand will go over $1 billion and account take overs will peak to $2 billion in the United States during the next four years. A card-not-present is a scam wherein customers do not use the actual card during transactions. Usually such scams happen online or via phone calls. Application fraud happens when scammers open an account using fake or stolen information from others. An account takeover, as the name implies, occurs when a hacker acts as the real customer using their victim’s personal account.

A study from Aite Group revealed that in United Kingdom, where the chip-and-PIN technology more than a decade ago, all types of credit card scams from its percentage to general transactions was cut in half within that period of time. The success of their adoption is because of the full execution of the EMV chip-and-PIN technology. This study also proved that there is indeed a continuous exponential increase in card-not-present scam.

The US has been having a hard time catching up with the success of other countries with the chip-and-pin technology. Since the introduction of this technology in the United States last October, only 35 percent of merchandisers have enabled their payment terminals to accommodate it.

Importance of chip-and-pin technology

EMV stands for Europay MasterCard and Visa, the companies who created the standard system. It is a term for smart payment cards and for its terminals, as well as its automated teller machines. They are also known as chip cards or IC cards which can store more information on the small squared integrated circuits than the usual magnetic strips.

These cards were purposely made to reduce credit card scams. This technological advancement will make it harder for fraudsters to steal credit card data thus eventually helping to reducing cases of identity theft. With such promising advantages speculations arise as to why one of the most powerful countries like the US is taking longer to adopt the technology. Skeptical consumers are beginning to doubt its credibility as to whether the new credit card feature is really offering them additional security or not.

Having a Personal Identification Number

An expert from Consumer Policy Solutions, Debra Berlyn, said that having a personal identification number just like Europe has, will create more security to the citizens of United States. Berlyn further stated that the IC cards give its users a two-way authorization process, which is the number one reason for its success in fighting credit card scams in some areas of the world.

Currently, in the USA, only a signature is required when doing transactions via credit card. This is considered as weak and of little worth in the view of Berlyn. She reasoned that signatures are commonly overlooked by merchandisers and worse it can be falsified. With those loopholes, credit card users are still being exposed to swindlers.

To wrap things up:

While some are impatiently clamoring for the full speed adoption of EMV cards, others have a different perspective on the matter. They said that there is no need to hasten the Slow PIN Cards adoption because most likely fraudsters will eventually find their way to hack into the new system. Thus, there is no accurate and fraudster-proof solution but to take full responsibility of one’s credit card.

Civil Penalties for Shoplifting

Protect your hard earned savings and always be cautious with every transaction made using your credit card. Do not be a victim of such scammers. To know more about how to be secured and protected from credit card fraudsters visit