While cryptocurrencies are perceived as an insecure form of money due to the hacks, digital fiat money is also susceptible. According to a new survey, credit card fraud has spiked even with security measures taken by legacy issuers. Criminals appear to have gained access to merchant point of sale (POS) systems and ATMs, and have also sold access to customer personal information through the internet.
Credit Card Fraud Spikes
A new survey conducted by Gemini Advisory found credit card fraud is still on the rise, even with the security chip proposed in 2015 (now mandatory for every credit card). The system, known as EMV (Europay, MasterCard and Visa) features the introduction of encryption between peers when making payments, something traditional magstripe cards lack.
But even with this new feature, they have proven ineffective to thwart credit card fraud. According to numbers derived from the survey, EVM cards were featured in more than 90% of card frauds reported. Also, even with this new tech, more than 60 million credit card fraud cases happened in 2018.
Stolen information can be used to manufacture a copy of the credit card, especially ones with a magstripe, which can then be used because it is still possible to pay by swiping as a fallback method if the card does not have an EMV chip. Or, most likely, the info of these cards is sold in bulk in various dark websites.
Not Only Cryptocurrencies Are Being Hacked
Media buzz, however, is about how cryptocurrencies are being continually hacked from exchanges, and it doesn’t help matters when Massachusetts Democratic Senator Elizabeth Warren declared cryptos were “easy” to steal. Digital fiat as a means of payment is no more secure, apparently.
While cryptocurrency hackers are focused on finding vulnerabilities on exchanges or in a particular cryptocurrency, credit card hackers are mostly interested in getting into networks of retailers to exploit unencrypted data of the credit card.
There is another kind of less common attack called shimming. It consists of embedding a physical device to read chip data. It is a less common approach because the criminal needs physical access to a POS to execute the attack.
What Needs To Be Done
As a recommendation, Gemini report asks users to switch to mobile payment methods like Apple Pay or Android Pay, methods that are contactless, and manage their own separate payment networks less likely to be tackled by hackers.
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