A recent Gallup poll found, that 69% of Americans, are “often” or “sometimes” endangered with a credit card by hackers. It’s not shocking. Consumers are becoming more educated on the subject, the financial institutions are starting to do more to combat fraud, including the introduction of new types of credit cards. An example of the latter is chip and PIN technology, which has celebrated consumers to the President for his ability to help prevent fraud. But it is the panacea that it was made to be?
Let’s take a closer look at what brings this technology. In contrast to cards, with which a magnetic stripe, contains a user account information, implement an embedded microprocessor chip card with the cardholder’s information in a way which makes it invisible, even if hackers take payment data while it is in transit between merchants and banks.The technology generates information also unique, difficult, but not impossible to falsify. Is there a cryptogram the banks to see if the data flow has changed and a counter each time the card registered sequential (kind of like the numbers on a check), is used so that a would-be cheater would have to guess, allows the accurate historical and dynamic transaction number for the charge to be approved.
Already used in all other countries of the g-20 as a secure payment method, find (short for Europay, MasterCard and visa) chip and PIN cards on the consumer side of the global payment system known as EMC. The system is its roll-out in the United States in the year 2015, and many of us in the banking and privacy industries believe that it was subject to the flow of money hackers while at the same time cutting down on credit and EC card fraud is stubborn.