By the end of October, many banks will have dished out new microshipped debit and credit cards to consumers. Known as EMV cards, this new piece of technology provides cardholders with better security.
How you may ask? According to creditcards.com, every time an EMV card is used a unique transaction code is created that can’t be duplicated. This means if a hacker stole a code from a point of sale, they would be unable to use it and their any transaction would be denied.
But while this new high tech card does give consumers more piece of mind, there are flaws you should be aware of.
The FBI says an EMV chip “does not stop lost and stolen cards from being used in stores, or for online or telephone purchases when the chip is not physically provided to the merchant.” This is referred to as card-not-present transaction.
Plus, data in the magnetic strip that are on EMV cards can still be stolen. This can happen if a store has not upgraded to an EMV terminal and becomes infected with data-capturing malware.
BBB offers these tips to keep your information secure:
Use the EMV feature. If you’re at a store and notice you can use the EMV chip, do it. The EMV allows you to have a securer transaction and limits the chance of sensitive information being exposed.
Protect your cards. Better security doesn’t mean you should stop being cautious. Always handle your cards with care and make sure to look at your bank statements. Check to see if there are any irregular purchases.
Cover the keypad while entering your pin. Not every store will have upgraded to an EMV terminal. If you still have to enter your pin while making a purchase, make sure to shield the keypad.