EMV chip technology, long heralded as the perfect solution to fighting credit card fraud, could take more time than expected to reduce fraud rates in the U.S. As American credit card issuers, banks, and retailers prepare to make the shift to EMV cards, experts believe that the way in which they are rolling out the new cards could still leave room for millions of consumer dollars to be stolen.
EMV in the USA
The newest addition to credit card technology has seen great success in European and Asian markets, leaving the United States as the last developed nation on Earth to adopt EMV technology. The problem with launching EMV has always been tied to time and money—experts and banks agree that it is necessary, but getting merchants and consumers ready is proving to take millions of dollars and several years.
Preventing Credit Card Fraud
EMV credit cards incorporate advanced security features to significantly reduce the risk of fraud when making purchases. Studies have shown that EMV cards are extremely effective, making it nearly impossible for cyber criminals and hackers to exploit payment data.
However, American Banker reports that the way in which EMV technology is being introduced in the United States leaves room for those criminals to find other ways to scam consumers. The old magnetic strip cards will still be around for some years to come in order to ease the transition to chip cards. This will allow criminals to steal data like they’ve always done—by hacking into merchants’ databases.
Fraudsters Will Have to Seek Alternatives
Despite the news that credit card fraud will still be a threat in the immediate future, those seeking to steal consumer credit card data will have to come up with an alternative. Once the U.S. is fully adapted to the EMV system, it will be nearly impossible to steal data and use it to commit financial fraud.
American Banker suggests that consumer bank accounts could be subjected to a larger risk of fraud because of EMV. When a hacker sees a consumer’s credit card information, it is often enough to open a bank account or access existing ones. Moving forward, American consumers will likely have to keep a closer eye on their checking and savings accounts, as well as their credit reports.
More on Credit Card Fraud
Instabill often reports on the latest developments in credit card fraud and EMV technology on its company websites. It is our goal to keep merchants and consumers alike informed about the latest trends in the payment processing world. To learn more about credit card fraud news or one of our merchant services, simply contact a live representative today.