FBI Warns That New Chip Credit Cards Still Vulnerable
Posted by: Timothy Weaver on 10/12/2015 09:52 AM
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The FBI public service announcement issued a warning yesterday to consumers stating that their newly issued EMV, or chip, credit card is still vulnerable.
The chip does provide an advanced level of security, but the FBI said the cards still can be subject to counterfeiting and the information on the card can be stolen.
The FBI suggests that instead of using a signature, the owner use a PIN. They are asking retailers to ask for a PIN for verification and if a PIN is not produced, photo ID should be demanded.
Chip and PIN technology, also referred to as the EMV standard, uses embedded microchips to store transaction data, rather than the traditional magnetized strips. Most important, these cards generate a unique code for each transaction.
This transaction code is provided to merchant and bank in place of the actual account number, which under the EMV standard the merchant never sees. This indirect approach to transaction reporting makes it all but impossible for criminals to effectively produce counterfeit cards.
The FBI said the cards still can be subject to counterfeiting and the information on the card can be stolen if the retail point of sale terminal has been hacked.
Source: SCMagazine
The chip does provide an advanced level of security, but the FBI said the cards still can be subject to counterfeiting and the information on the card can be stolen. The FBI suggests that instead of using a signature, the owner use a PIN. They are asking retailers to ask for a PIN for verification and if a PIN is not produced, photo ID should be demanded.
Chip and PIN technology, also referred to as the EMV standard, uses embedded microchips to store transaction data, rather than the traditional magnetized strips. Most important, these cards generate a unique code for each transaction.
This transaction code is provided to merchant and bank in place of the actual account number, which under the EMV standard the merchant never sees. This indirect approach to transaction reporting makes it all but impossible for criminals to effectively produce counterfeit cards.
The FBI said the cards still can be subject to counterfeiting and the information on the card can be stolen if the retail point of sale terminal has been hacked.
Source: SCMagazine
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