EMV is short for Europay, MasterCard, and Visa. These are chips embedded into the card to create a one-time-use code that will be needed for every purchase. This makes a stolen credit card to become less valuable on the black market. This is the newest defense in the growing threat of cybercrime. The chip will be implanted in new cards. Consumers will be able to see a slightly longer transaction process when they run their new credit cards through in-store terminals, but this will all be for the better to fight against hackers.
EMV is the New Defense System in the Fight Against Cybercrime
With EMV, consumers don’t have to worry about the threat of their credit card information getting stolen. The creation of the chip was based off a cybercrime that happened in 2013 when the retailer Target had their system compromised by a hacker which then led to the business to lose about 40 million credit and debit card numbers. This was done during the holiday season of said year.
For everyone’s information, there are two ways hackers can steal information from a credit card. One is when they use card skimmers located in the card terminal. These can usually be found in ATMs or gas pumps. Another way is for them to penetrate a company’s information system, which will be done entirely through cyberspace. Other than these two methods, mugging or outright stealing is still there but it is a more obvious method which is not an entirely plausible solution, even for thieves, as it will heighten their chances of getting caught.
The copied card numbers and other information can be used to make fraudulent purchases. Stephanie Ericksen, Visa’s vice president of risk products, states that about two-thirds of fraudulent in-store purchases are made with counterfeit cards. The other one-third were authentic cards being used but were acquired through stealing.
This is where the new EMV chips can greatly help. Since the chips will send an encrypted, one-time code for each transaction, the cards will be harder for thieves and people who have committed the fraud to read and duplicate.
It is not only retailers who need to adapt to this new system concerning the EMV but also consumers as well. There will be some inconvenience initially, but many will adapt over time. However, despite the increase in security, industry watchers are still well aware that their fight against fraudulent behavior is still far from over.