emixmyrj

Getting smart about chip technology

By on December 18, 2020

first_imgOver 13 million U.S. citizens fell victim to identity fraud last year, costing financial institutions a total of $15 billion[1]. To better guarantee customer security in 2016, more and more credit unions are turning to Chip-and-PIN technology. Chip-and-PIN cards are quickly becoming the global standard in both credit and debit card payments. These new smart cards, or EMVs, utilize a computer chip embedded in the card to authenticate transactions. When this card is inserted into a chip-enabled reader, the chip on the card communicates with the reader by sending a one-time, dynamic code unique to that transaction.There are a number benefits for both the customer and credit union in switching to the chip-and-PIN card technology. The unique transaction code makes it near impossible for criminals to develop a counterfeit card with data stolen from a Chip-and-PIN card. The security enhancements built into chip technology far exceed that of magnetic stripe technology and will be integral to helping reduce a credit union’s payment card data breach and fraud exposure when the physical card is used. Chip-and-PIN technology will also reduce exposure to card data compromises, which alleviates the time and resources used by a credit union to process fraud claims.As smart cards become more widespread, adoption of the new technology has the potential to build on a credit union’s reputation and membership. In fact, many financial institutions around the world have already converted to chip technology. European Union countries rely exclusively on chip-and-PIN technology and often do not even accept chip-and-signature cards[2]. This means adopting chip cards will also make it much easier for cardholders to travel internationally.It is impossible to ignore the added benefits of adapting to Chip-and-PIN technology. However, while the new technology virtually eliminates fraud when a purchase is made in a face-to-face transaction, Chip-and-PIN does not address online, mail, telephone, or lost/stolen card fraud. Therefore, credit unions should continue to deploy multiple layers of protection and should enhance existing fraud detection systems to help combat fraud in both the card-present and card-not-present environments. 75SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Tammy Behnke Tammy Behnke joined ProSight in October 2012 and is the Program Executive for the company’s Credit Union Program. Tammy has nearly 28 years of underwriting experience, specializing in financial … Web: www.prosightspecialty.com Detailslast_img read more

Continue Reading