EMV Is No Payment Security Panacea

On Oct. 1, 2015, the U.S. is going to be the last G-20 country uses EMV technology. The advantage of using EMV is because the chip creates a unique code for each transaction, and it doesn’t let criminals to create fake EMV cards like they can with magnetic strip cards. It took many years to make a change for U.S. because it is hard and expensive. But one analyst Shirley Inscoe argues that “it won’t be a good idea for either merchants or card issuers to cut corners in that process”. “Personally, I think that’s a big mistake, because I think it’s going to drive a lot of the fraud to debit cards, and their strategy of waiting to issue debit cards is going to backfire.”

EMV cards can reduce the large portion of fraud at this point, but it doesn’t mean fraud will disappear. There are many possible ways for criminals to take individuals property such as online fraud and application fraud. Especially, application fraud, ‘using stolen identities to apply for and use legitimate cards’, is going to be a big problem after EMV comes out.

EMV can be a great factor of eliminating such fraud, but it alone cannot be a complete solution.  As the BRP report notes, “EMV adoption does not actually reduce the risk of a breach; rather it weakens the incentive for thieves to steal credit card information by requiring that the physical card (and its security chip) be present at the transaction. A second line of defense – encrypting credit card data at the swipe – is also highly recommended.”

Nowadays, everything has been changed to be more speedy, easy and simple. But I wish it would be more secure. Some point we can use our EMV card every place in every country, but it is too simple to use it. Most of the stores don’t check the individuals identity from their card.

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