The reliability of the new technology of EMV

At the initiative of the parties bearing financial losses from credit fraud, the movement of cardholders and merchants regarding the introduction of EMV technology has increased. This move is aimed at reducing the level of credit card fraud, but according to new research by NerdWallet, the opposite is likely to happen, as criminal elements will use other ways to commit criminal acts.

Below are the disadvantages of the EMV system, as well as methods of protection against fraud.

What is EMV and how it works

EMV technology – a small silver or gold chip embedded in the card-is more secret than a traditional card with magnetic tape (EMV is installed on the cards of companies that have adopted this standard – Europay, MasterCard and Visa). On magnetic cards, data on fixed payments can simply be “reset” from one card to another, EMV technology adds sophistication to the payment process.

“The EMV chip creates a unique payment code, so if a fraudster can steal it, the code will not be suitable for any other payments,” says Sean McKay, NerdWallet credit card expert and creator of Visa strategies.

The more merchants install terminals for new cards, the more fraud migrates to terminals that use the old ways of processing requests. “Therefore, I always warn consumers about the possibility of theft of the cards themselves after the introduction of this technology,” says McKay.

But as good as the technology is, EMV doesn’t solve all the credit card security problems.

Limitations of EMV technology

In October, the responsibility for credit fraud went only partially, from the cardholder or seller to someone who does not use this system. This phenomenon is called “responsibility shift”. It intensifies the efforts of both parties in favor of the introduction of this technology. But only both parties need to improve the security of their payments.

“EMV is a powerful thing, but the technology is effective when both buyers and sellers are willing to use it for transactions. Buyers need chip cards, and sellers need devices to read these cards, ” says McKay. “If only one party will adopt this technology for transactions, then it will be absolutely useless.”

With the introduction of EMV technology for personal transactions, fraudsters will switch to operations that do not require the physical presence of a card, such as Internet and telephone payments. In addition, it can be noted that until the introduction of this technology, payments will remain vulnerable until 2017.

How to protect yourself from fraud

It is important to learn how to use a card chip to ensure the security of transactions. The new terminals are easy to use: you need to insert the card into the payment terminal chip forward. Leave it there and follow the instructions. Pull out the card when the cash register starts printing the receipt.

From October, try to shop in stores equipped with EMV terminals. While scammers will strenuously attack retail outlets without EMV technologies.

Online payments are not protected by EMV technology, so be vigilant.

“EMV chips are only useful in real practice, when you physically insert a chip card into a special card reader,” says McKay. “For online payments, everything is entirely your responsibility and online merchants protect payment data with passwords.”

To protect yourself from online fraud, do not make purchases on obscure or unprotected sites. Secure sites start with the URL “https” instead of”http”. If you enter card information on online merchant sites, change your password more often. Also, do not send your credit card information via email or social media.

And finally, since EMV technology is used to combat real fraud, the shift of responsibility will be towards online shopping and cardless transactions. Therefore, protect your card using EMV chips. And also take steps to prevent online fraud by shopping on secure sites and not sharing your credit card details.