FBI says chip-based credit cards safer but need PIN to protect against fraud

The National Retail Federation today said it agreed with a warning from the FBI that new chip-based credit cards are safer than traditional cards but still vulnerable to fraud and need to be used with a PIN instead of a signature to minimize risk.

“What the FBI is saying is what the rest of the world already sees as common sense,” NRF Senior Vice President and General Counsel Mallory Duncan said. “It’s the right thing to do, and we hope the banks are listening.”

“Retailers are determined to protect their customers,” Duncan said. “That’s why we are pushing the banks to use all of the security the new cards are capable of providing, not just half. They shouldn’t lock the front door but leave the back door wide open.”

In a warning issued on Thursday to consumers, merchants and law enforcement, the FBI praised Europay MasterCard Visa chip cards as being more secure than traditional magnetic stripe cards, but said they are “still vulnerable to fraud.” Despite card industry claims that the chips are difficult to counterfeit, the FBI said the cards “can be counterfeited using stolen card data obtained from the black market.” The bureau also said the chip “will not likely” stop stolen or counterfeit cards from being used online or in telephone purchases.

Source: https://www.cuinsight.com/press-release/fbi-says-chip-based-credit-cards-safer-but-need-pin-to-protect-against-fraud

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