Chip card security is the latest standard in credit card security. The data on chip cards is constantly changing, making it extremely hard to isolate and extract. To clone, someone would have to get into the physical chip circuit and manipulate things to get your bank information.
U.S. retailers who have implemented EMV have seen counterfeit fraud costs decrease 54 percent (compared to the period of April 2015 to April 2016). Meanwhile, counterfeit fraud costs increased by 77 percent YOY among merchants who haven’t yet upgraded Chip cards are different in that they have sophisticated encryption built right into the chip.
In 2014 US card Fraud,45% of them are online,37% counterfeit, 14 % lost/stolen 4% others. Overall we can see even though there would be proposed decrease of frauds like theft or duplicating other kinds of frauds like online frauds would not be affected by this change in features of the card.
Next generation of devices like Coin which can store debit, credit cards can be used for payment or cards stored in e-wallets like apple pay. As no card is physically visible in my view it would be difficult even to copy the card number which could make online fraud difficult.
References:http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php
http://www.vanillaplus.com/2015/08/07/10551-history-of-cashless-payments/https://squareup.com/townsquare/why-are-chip-cards-more-secure-than-magnetic-stripe-cards/
http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php
http://creditcardforum.com/blog/credit-card-statistics/http://www.creditcards.com/credit-card-news/credit-card-security-id-theft-fraud-statistics-1276.php
http://www.smartcardalliance.org/publications-end-to-end-encryption-and-chip-cards-in-the-us-payments-industry/http://www.bbc.com/news/business-38174011
Chip cards greatly decrease the fraud percentage after implementation. And there will be new technology out there in the future. And I like your idea that with no visible cards being used in next generation, it will be hard to copy the card numbers and avoid fraud.
While the EMV technology will likely lessen counterfeit fraud, the liability shift in the U.S. may result in an indefinite increase in fraud in online shopping and other transactions where the card is not present. The only solution is to keep your data secure by learning how to use an EMV chip for in-person purchases and by taking steps to prevent online fraud by shopping only through secure sites.
While EMV technology will likely lessen counterfeit fraud, the upcoming liability shift in the U.S. may result in an indefinite increase in fraud in online shopping and other card-not-present transactions. So the only available solution is to keep your data secure by learning how to use an EMV chip for in-person purchases and take steps to prevent online fraud by shopping only through secure sites.
It is great to see data on the effects that chips cards have had in recent years. Many consumers begrudgingly accepted their new cards as well as the new steps to go through at registers. This gives me reassurance that such fraudulent activities can continue to decrease with the increase in user-ship of mobile wallets. The only concern I have is how and if this credit card information securely stored.
Although being “cardless” can be one way to prevent fraud, I wonder what precautions these e-wallet companies have put into place to protect stolen credit cards? How would they prevent stolen credit card details from being uploaded and used?