Consumers need to watch out for smart chip credit card fraud

On the 1st of October, the deadline for credit card retailers & issuers to start supporting smart chip or EMV-chipped credit cards passed. As per experts, these cards help increase the encryption on transactions as it generates a new number & encrypts it every time that the card gets used which theoretically reduces the odds on any credit card fraud. But, there are still a lot of people who believe there are risks still as far as these credit cards are concerned and that fraud is still something that new users of credit cards will have to be wary of.

Steve Weisman, of USA Today framed this story by explaining that around 40% of consumers have got their new cards according to a survey conducted by CreditCard.com. A spokeswoman for VISA even said that as of the middle of September, just 20% of their card holders had received the new EMV-chip cards. That is 151.8 million of their customers but still a very small part of their entire customer base. This is where scam artists have the potential to get involved.

Weisman spoke about how these scammers benefit from this problem of not enough people having chip credit cards. They simply claim to be pretending to be representatives from the consumer’s credit card provider. They ask customers to confirm personal information so that their account can be updated or to click on links and then update their information. Either way, it’s quite a problem if you’ve received such emails.

Weisman said that if people choose to provide such personal information through these emails then you would have certainly turned this information over to a scammer who’ll make you an identity theft victim. If not this then you would have at least downloaded malware which logs keystrokes & steals all your personal data including passwords, banking credentials and social security numbers.

So how do you keep these things from happening? Should you be waiting for this credit card to arrive? According to Weisman just because your credit card company’s logo is on an email doesn’t mean it is legitimate. Checking the legitimacy may be easier by taking a look at the email address it was sent from. Grammar and proper spelling doesn’t make an email legit either. Most card issuers usually address emails with generic terms like “Dear Cardholder” and never by your actual name. They also only refer to the last 4 digits of your credit card and not the rest of it. You should never confirm any of this information while responding to any such email.

Source: http://www.thestandarddaily.com/consumers-need-to-watch-out-for-smart-chip-credit-card-fraud/6099/

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