As the credit card industry undergoes a massive liability shift and banks are handing out new chip enabled cards, fraudsters see opportunities to defraud users.
Banks have been mailing out EMV embedded micro-chipped cards to credit and debit card users in order to usher in a new standard of credit card processing. Business owners are not required to purchase EMV readers and pin pads, but will be held responsible for any chargebacks that transpire without one.
A September survey suggested more than 60% of users had already received new cards; although, many consumers have yet to make the switch.
Unequal distribution of EMV cards is causing a great deal of scams. By dispatching fake emails disguising themselves as credit card distributors, hackers are stealing personal information. The Federal Trade Commission (FTC) indicated in a blog post on Monday, fraudsters have been directly requesting information or urging them to update their account and get an upgraded card through links.
Clicking on the link may also cause malware and other viruses to occupy and compromise your system.
The FTC reminds consumers, “There’s no reason your card issuer needs to contact you by email — or by phone, for that matter– to confirm personal information before sending you a new chip card.”
Be sure to only provide personal information on a companies secure website.
New smart-cards create unique codes for each transaction you make. Unlike magstripe cards, that store information on the magnetic strip, smart cards each transactions authentic code are impossible to clone.
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