New Credit Card Technology Brings New Credit Card Scams

New Credit Card Technology Brings New Credit Card Scams

October 1 2015 marked the deadline for all credit card issuing companies and retailers to make the switch to the brand new EMV cards, which contain an advanced computer chip meant to create and encrypt a new number each time a credit card is used to make a purchase. This new technology is meant to drastically reduce the current amount of credit card fraud that occurs every day, but it seems that this new technology is also bringing along some new forms of credit card scams.

New Rules

Every credit card issuer has had to create brand new cards for all of their customers. These cards need to follow the new regulations that have been implemented to keep consumers’ sensitive data safe.
If a business fails to switch its current credit card processing machines to new EMV machines, or if a card issuing company doesn’t give its customers the new chip cards, they’ll be responsible for any losses that result from credit card fraud.

In other words, if you use your credit card and become a victim of fraud, the blame would either be placed on a retailer who failed to use the new credit card processing systems available, or your credit card issuer if you never received the new EMV card.

Not Everyone Has Switched Over Yet

Despite the consequences of failing to make the switch, roughly 60% of Americans have yet to receive their new cards. Additionally, many retailers don’t want to take on the daunting task of updating their processing machines. Even though some retailers, like Walmart, Costco, Walgreens, and Target, have already switched to the new processing machines, there are still plenty of companies that are far behind. It’s these gaps in the transition that have created new opportunities for scammers. The best advice you will receive fromĀ law firm public relations.

Beware of Scams

Scammers have taken advantage of this situation and have begun contacting individuals via email. In those emails, the scammers pose as credit card companies, informing consumers that they need to receive a new EMV card but they also need to update or confirm their account and personal information.
When consumers confirm the information or click on links where they can provide the information, they become the victims of fraudulent activity like identity theft.

Clicking on links can also make someone inadvertently download malware that can steal personal data from their computer, such as financial information, passwords, and even their Social Security number. By taking steps to verify the identity of an email’s sender, consumers can keep themselves safe until they’ve received all of their updated cards.