At One Payment, we love providing our readers with the latest news out there! Recently, chip card issues have led to an increase in identity theft, and this article will elaborate on the source of the problem.
The Flaws of Technology
While no form of technology is perfect, chip cards have certainly brought several advantages to the table. However, just like anything, hackers have still figured out a way of stealing consumers’ identities. Interestingly, recent studies have shown that identity theft has actually risen since chip cards have been introduced. In 2016, the number of identity fraud cases rose 16 percent, which is the equivalent of 15.4 million cases of identity theft.
The Loophole
While chip cards are supposed to require a PIN and a signature, many people have been relying on the fact that merely inserting the chip card into the reader is enough. However, one cannot take too many steps to ensure their security. Unfortunately, consumers are at the mercy of the retailers and their equipment. While someone might want to use five different types of verification, only two might be available. In that case, what can the consumer do?
Fortunately, nearly every major credit card merchant has its own app, and there are various settings which can alert you anytime a transaction has been processed on your credit card. That way, if you receive an alert and you know you didn’t make or authorize the charge, you can call your card provider and figure out what happened. Several cases of theft have been deterred this way, especially when the charges are in a different city or state.
An Interesting Culprit
Surprisingly, online commerce is a major part of this problem. With online shopping, there is no reader to insert your card into, and there is no signature required. In an ideal world, all a hacker needs is the card number, and they can then go on a shopping spree. Moving forward, online retailers need to take additional steps to ensure their customers’ safety.
While chip cards have brought several advantages, it’s important to realize that no technology is perfect. As a consumer, it’s important to always be observant and know your spending habits. If you see a charge that seems suspicious, call your card company so that they can flag it. Those who stay aware will ultimately stay protected!
