How Credit Card Fraud Happens: Do Chip Cards Help?

A magstripe card is a rare find after the invention of the chip. Still, your finances aren’t vaulted. Skimming and shimming, two primary methods of scamming, are on the rise; just in 2018, American credit and debit card fraud resulted in nearly $28 billion in consumer depletion. However, these aren’t the ways your data can be compromised. 25% of laptops are stolen from offices and cars, and 14% are lost during airport and airplane travel. Yet, only 25% of victims have their devices returned to them. 

Theft happens easier than we think. Skimmers often hide devices and cameras on ATMs and gas pumps to collect chip and magstripe card data. With this information, they spoof your number, sell it to another fellow scammer on the dark web, and even triple the value of the sale if they can obtain your bank routing and account numbers. 

However, the chip card has helped, and has also sent scammers into overtime.By October 2020, all American brick-and-mortar merchants will be required to use chip transactions. If not, the merchant will be legally responsible for any fraud inflicted on their consumers in any instance their data is compromised.

The source below provides tips on the best ways to protect your data.

Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency , based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, hosts the Next Action Podcast, and has been named a Google Small Business Advisor for 2016-2018. Follow Brian Wallace on LinkedIn as well as Twitter.

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