How to Avoid Crafty Chip Card Scams

Although chip card use was anticipated to be well underway in the U.S. — and the Payment Liability Shift went into effect October 1, 2015 — payment security continues to ramp up slowly.

At the time of the shift, about 60 percent of Americans still didn’t have a chip card, according to a survey by CreditCards.com — reflecting the slow rollout of issuing the new encrypted cards.

Moreover, many merchants are contributing to this sluggish transition. The majority of small businesses “plan to comply either at a later time (34%) or do not plan to upgrade their systems to comply (21%),” according to a Wells Fargo/Gallup survey. And, as of July 2015, that same survey found that 49 percent of small businesses were unaware of the shift and the upgraded payment system it requires.

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Mass Zoo Data Breaches Bring Consumer Safety to Light

Point-of-Sale System Breach Zoo Fighting Identity Crimes

In early July, nine different zoos including the Detroit and Cincinnati Zoo, suffered four-month-long data breaches. Visitors who used their debit or credit card at one of these facilities’ food or retail vendors may be at risk of having a crook overtake their finances.

This widespread — and somewhat obscure — compromise of customer data raises the question: “How could this many zoos suffer data breaches at the same time?”

The answer is actually quite simple, but is rarely top of mind for consumers as we go about our day-to-day lives. Continue reading

Magnetic Strip v. Chip-and-Pin Card Series

Update: As we look to the UK as a pioneer in card security, we must also note their unfortunate but predicted fraud trends. Fraud loss on UK-issued cards totaled £470 million in 2014, a 6% increase from 2013. This is the third consecutive year the fraud loss has increased.

Good-bye Magnetic Strip! Good-bye Card Fraud? How EMV Cards Impact Fraud PART II

In Part I of our chip-and-pin (EMV cards) series, we discussed the merits of replacing magnetic strip cards with chip-and-pin technology. Namely, at point-of-service, EMV cards can be verified as authentic and ensure the card user is the legitimate cardholder. In terms of reducing fraud, however, there are still differences of opinion concerning the overall effectiveness of chip-and-pin. For example, the U.K. Cards Association says there has been a dramatic reduction in fraud since the introduction of these cards, saying that “Fraud on lost and stolen cards is now at its lowest level for two decades and counterfeit card fraud losses have also fallen and are at their lowest level since 1999.”  Continue reading