The Electronic Payments Coalition commended the U.S. Federal Bureau of Investigation for publishing a public service announcement about the new Europay, MasterCard and Visa technology implemented into newly released credit and debit cards. While the new cards are supposed to be much safer than their magnetic strip predecessors, the FBI warned that the technology can still be exploited by card thieves. The Electronic Payments Coalition felt the need to reach out to the FBI and acknowledge its support of the public service announcement. The coalition said that the FBI's announcement provided consumers with important information.
" … implementing EMV alone is not a panacea." The Electronic Payments Coalition wrote in its press release. "Securing the payment system requires stopping fraudulent transactions where ever they may happen (in person, online, via mobile device or over the phone),"
The coalition went on to say that EMV is a step in the right direction pushing some of the blame for people's stolen card information onto merchants. It said millions of Americans have seen their card information exposed to thieves due to lack of security on merchant networks.
The FBI's public service announcement
While this EMV technology should help with fraud, the FBI warns that lost or stolen cards can easily be used by thieves for both in-store and electronic payments. Also, the FBI urged consumers to utilize EMV technology whenever it is available to them. The best way to prevent fraud, according to the FBI, is to pay special attention to how the card is handled and processed. Also, the FBI suggested reaching out to local law enforcement or an FBI field office if a person believes their card was stolen.
Utilization of EMV technology may not be as easy as some think
The Electronic Payments Coalition noted in other areas of the world, EMV technology reduced in-store fraud by 60 to 70 percent. While it makes sense to use EMV technology whenever it's present, many merchants have yet to implement the technology. The coalition reported less than 30 percent of retailers have paid for and connected new EMV payment processors in their stores.
This means many consumers and merchants are at risk of paying dearly for fraud. The deadline for the new liability rules was Oct. 1. Now that the date passed, merchants will have to pay for any fraudulent activity committed in their store. Some large merchants may have the funds to take the hit in the meantime, but small businesses and sole proprietors need to make the switch to the new technology as soon as possible.
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