June 26, 2016
At the end of last year, two of the biggest credit card companies in America officially rolled out their newest technology—the microchip. Visa and MasterCard paraded this advancement as an answer to the swipe technology that was employed for decades. Hundreds of millions of dollars were spent to distribute newly chipped debit and credit cards to account holders. Over $8 billion dollars was spent by large retailers to install new card readers that are capable of handling the new microchip technology to process transactions. All of this expense and effort was done to increase card security and decrease fraudulent transactions.
The marketing behind the new technology sounds impressive and the chipped cards look sleek. But for all of the bells and whistles that these new cards offer, increased security against fraud and cybercrime isn’t one of them. In fact, some experts are arguing that these new cards may be even less secure than their chip-less predecessors.
So why were these chips introduced as the answer to credit card security? Well, the answer is a little complicated, at their conception, the chips were designed to decrease the ease of making purchases with fraudulent cards made with stolen numbers. The chip contains a