![]() ![]() In this new scam, the perpetrator takes a credit card and installs a fake EMV chip in it. This is the loophole that fraudsters are now trying to exploit. #Emv credit card terminal upgradeUnfortunately, not all merchants are willing or able to upgrade their terminals, and most newer terminals are set up to allow for transactions to be processed off of the magnetic strip to accommodate older cards without chips, or cards with malfunctioning chips. By requiring customers to use EMV chip-verified transactions at the point of sale, merchants can screen out many of the more commonplace forms of credit card fraud. It's much more difficult to steal credit card information from EMV chips, and fraudsters can’t create cloned cards with valid or functional EMV chips. The presence of the EMV chip verifies the authenticity of the card and can allow for customers to use encrypted PINs to authorize transactions. Devices called “skimmers” can read the magnetic strips on cards, copy the information they contain, and clone them onto a new card. Worst of all, fraudsters wouldn’t even need to steal your actual credit card. Signatures and IDs can be forged, and a cardholder’s ZIP code is often easy to guess. Of course, these safeguards were easy to defeat if you had a stolen card. The customer’s identity could then be verified with a signature, an ID, or a ZIP code. Originally, point-of-sale terminals read credit card information off of the magnetic strip customers would swipe through them. Now, retail merchants are finding themselves increasingly victimized by a new scam that uses deception to circumvent EMV chip security features. ![]() It’s an undeniable fact, however, that fraud is constantly evolving alongside the technologies developed to stop it. This tiny piece of hardware has gone a long way toward reducing fraud from cloned cards and other longstanding methods that exploit the vulnerabilities of older technology like magnetic strips. Conclusion: Hold the Line on EMV Verificationįraud can target nearly any business, but card-present merchants had been able to breathe a little easier in recent years thanks to the introduction of the EMV chip. #Emv credit card terminal how toEMV SRC Explained FAQ: What is a chargeback? How do I prevent them? TIPS: How to choose Chargeback Services & Management FAQ: What is the Chargeback Process? FAQ: What is Chargeback Representment? Bank of America Chargebacks FAQ: 2020 Visa Chargeback Guide Table of Contents ![]()
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