EMV CARDS Security
Why are EMV Cards more Secure than Traditional Cards?
EMV Cards Security, metallic square you’ll see on new cards. That’s a computer chip, and it’s what sets it apart the new generation of cards.
The magnetic stripes on traditional credit and debit cards store contain unchanging data. Whoever accesses that data gains the sensitive card and cardholder information necessary to make purchases. That makes traditional cards prime targets for counterfeiters, who convert stolen card data to cash.
If someone copies a mag stripe, they can easily replicate that data repeatedly because it doesn’t change.
- Unlike magnetic-stripe cards, every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again.
- If a hacker stole the chip information from one specific point of sale, typical card duplication would never work “because the stolen transaction number created in that instance wouldn’t be usable again and the card would just get denied.
- EMV technology will not prevent data breaches from occurring, but it will make it much harder for criminals to successfully profit from what they steal.
EMV Cards Security Reducing Fraud
Experts hope it will help significantly reduce fraud in the U.S., which has doubled in the past seven years as criminals have shied away from countries that already have transitioned to EMV cards.
The introduction of dynamic data is what makes EMV cards so effective at bringing down counterfeit card rates in other countries.
Counterfeit fraud rates have already decreased in the U.S. as a result of EMV adoption, according to Mastercard and Visa. In March 2017, chip-enabled merchants saw a 58 percent drop in counterfeit fraud compared to a year earlier, according to Visa. Mastercard noticed a difference even earlier: It recorded a 54 percent decrease in counterfeit fraud costs among its EMV-ready merchants from April 2015 to April 2016.