The October 2015 deadline to have all stores compliant with EMV chip card technology is quickly approaching. However, If you somehow have the choice to stick with a traditional style credit card or upgrade to one of the new smart credit cards that come with the chip on the front of it, you might want to hold off for a while, at least until some of the security concerns are addressed.
A report published by Javelin Strategy & Research sheds light on the fact that, although these credit cards will offer superior protection when it comes to point-of-sale transaction, the cards are looking to be notoriously poor at protecting cardholder data in regards to online transactions. These chipped cards, which are called EMV-chip cards, work by creating a one-time code for every transaction that takes place, and will reduce the need for signature authorization. For shops that accept credit cards but don’t have a way to use these chipped cards, signatures will still be an allowed way to authorize purchases for cardholders.
The problem comes about, however, when these chips are used online. Apparently they have a vulnerability that is easily exploited through the internet. In fact, the report points out that EMV chip cards are liable to raise “account takeover” by a huge 90 percent through 2019. As many shift more and more to shopping habits that rotate heavily around online transactions, this news is pretty troubling to hear.
As far as the market and credit card industry are concerned, it seems completely irresponsible that something forced on the public this day and age would be so full of security holes in regards to online shopping.
Are you concerned about the security of your EMV chip card and shopping online? Sound off in the comments below and let us know your thoughts on this report.