Study: ID Fraud Up Since Security Chips Put Into Play
DALLAS (CBSDFW.COM) – It’s a tiny chip that elicits big opinions.
Meant to protect customers from credit card fraud, most cards now have security chips, and many businesses bought the chip readers to go with it. But more than a year after they became common place, research shows that identity theft is actually up.
“With all the credit card hacking and privacy invasion, I think it’s a fantastic idea,” said one consumer.
Not so, said another. “It holds you up. It’s annoying.”
Consumers and businesses switched to the chip-based cards and readers 16 months ago to deter theft. But a study released this week from Javelin Strategy and Research found that identity fraud cases rose 16 percent in 2016, which equates to 15.4 million new victims – a record high. Lane Conner, founder and CEO of credit card processor Fuze said the chip rollout was bungled from the start, in part because it was supposed to require a pin – not just a signature…. [read more]
lhwm opinion: Going to school for I.T. has its advantages and one of them is knowing what the tech world is doing and can do. This is why we post a lot of news concerning technology, identity, and computers because they want to know everything about you. It’s our job to stop this cycle by not using it or getting smart with the technology that is out. One of our warnings was about the rfid chips on a credit card, and we posted news about this back then of how unsafe these cards really are, even though the bank says they are safer! What a lie! I know better, so one of the preparations I do is wrap my credit card in aluminium foil. If at anytime you believe your devices are monitoring you then SHUT THEM DOWN and wrap them in foil, because even though it is turned off, some have small batteries in them to keep them alive. We hope these articles help you and inform you of what is going on.
The reason why all these banks switched over to a chip so quickly is because, on
“Oct. 1 is the deadline set by MasterCard, Visa, Discover and American Express for banks and retailers to adopt chip technology, or else they’ll be liable for any fraud that occurs at a point-of-sale transaction. If a retailer doesn’t have payment terminals that read computer chips starting Oct. 1, the retailer will be liable for any fraud. If a retailer has chip payment terminals but a consumer is using a card that his bank hasn’t replaced with a chip card, then the bank will be responsible for any fraud. Gas stations have an extension until 2017.” read more
This is a long article but is loaded with great information. However, the less fraud theory that looked good on paper did not fair so well in reality.
other articles to read
- How to Know If There Is an RFID in My Credit Card
- A cashless society? Some retailers turn noses up at currency
- Europe Proposes “Restrictions On Payments In Cash”