Last Call For Old School Credit Card Fraud In The U.S.

Megalith

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According to MasterCard, almost 70 percent of U.S. consumer credit cards now have chips, and 76 percent of the 200 biggest merchants are able to accept them. Naturally, crooks are expected to exploit what they have before the switch is complete.

Counterfeit-card fraud will rise to $4.5 billion in 2016, up 12.5 percent from last year, as crooks ramp up their thievery before all merchants and banks have moved to accept the more secure chip technology, said Julie Conroy, an analyst at financial-industry researcher Aite Group. The theft is especially hurting retailers that hadn’t equipped their stores to accept chip cards by Oct. 1, when banks stopped footing the bill for fraud committed at non-compliant locations. “There’s a fire sale, to try to burn through all of the stock of card data that they’ve seen,” Conroy said.
 
All this does is slow down transactions. In every instance where I've had to use the damned chip reader style terminal since I've had my "chipped" VISA debit card from my bank it's taken much much longer to process a transaction. Getting the card into the slot, waiting for it to read the chip, then removing the card takes roughly 15x longer to do than just a swipe which is like 1/2 second at best and works just fine.

I understand the concept behind all this but when it comes right down to it this is another case of technology not particularly making things easier or more efficient overall. Sure as time passes they''ll get better readers, faster transactions, etc, because technology does progress as time passes but, for the moment it's nothing but a major PITA for the overwhelming majority of consumers with every transaction they're having to deal with.
 
All this does is slow down transactions. In every instance where I've had to use the damned chip reader style terminal since I've had my "chipped" VISA debit card from my bank it's taken much much longer to process a transaction. Getting the card into the slot, waiting for it to read the chip, then removing the card takes roughly 15x longer to do than just a swipe which is like 1/2 second at best and works just fine.

I understand the concept behind all this but when it comes right down to it this is another case of technology not particularly making things easier or more efficient overall. Sure as time passes they''ll get better readers, faster transactions, etc, because technology does progress as time passes but, for the moment it's nothing but a major PITA for the overwhelming majority of consumers with every transaction they're having to deal with.
I think that's because the merchant skimped on hardware on their end. Not surprising though.
 
Haven't noticed the total transaction time being much longer. With the swipe, there is swipe(put card away), wait, sign, wait, done. With the chip, insert, wait, sign, wait, take card and put away, done. Time out of wallet is much longer.

Most of the places I use a CC have the chip reader but still don't have it activated and only allow swipe. And that doesn't count gas stations which got yet another extension before they are supposed to implement chip readers.
 
Wife and I got our chipped debit cards just the other day. Wife went to the store to use it for the first time and had to go to three different cash registers to find one that the chip reader was working. Doesn't seem like an improvement at all.
 
All this does is slow down transactions. In every instance where I've had to use the damned chip reader style terminal since I've had my "chipped" VISA debit card from my bank it's taken much much longer to process a transaction. Getting the card into the slot, waiting for it to read the chip, then removing the card takes roughly 15x longer to do than just a swipe which is like 1/2 second at best and works just fine.

Maybe they made the process slow on purpose? The chip readers they use up here in Canada are faster at reading the chip than even just sliding your card through the old-style reader and since the pin replaces the signature they're significantly faster overall. And for payments less than $100 you can use the NFC contactless option and the whole process takes about 5 seconds from start to "approved".
 
Maybe they made the process slow on purpose? The chip readers they use up here in Canada are faster at reading the chip than even just sliding your card through the old-style reader and since the pin replaces the signature they're significantly faster overall. And for payments less than $100 you can use the NFC contactless option and the whole process takes about 5 seconds from start to "approved".

The US banks are behind Canadians banks when it comes to this so not surprised of the teething problems in the US.
 
I've had chips in my card for the past 8-9 months and have had my CCs (3 of them) compromised since this new Chip standard went in effect. I thought this was suppose to make us more secure? We really need to bring the EU/Canada way of doing it. Where at a restaurant, they bring the reader to you instead of walking away with your card to swipe it in the back room.
 
I call bullshit on those statistics. Sure 76% may have the chip readers but of those maybe 40% have them set up to use. I cant count how often i stick my card in the chip reader part just to be told "that dont work run it like a normal card".
 
I've had chips in my card for the past 8-9 months and have had my CCs (3 of them) compromised since this new Chip standard went in effect. I thought this was suppose to make us more secure? We really need to bring the EU/Canada way of doing it. Where at a restaurant, they bring the reader to you instead of walking away with your card to swipe it in the back room.
That will take roughly 90million trips on a DeLorean to bring a USA that is up t today's moderns standards into todays timeline.
I don't have that much fate to an American built sedan :D

I call bullshit on those statistics. Sure 76% may have the chip readers but of those maybe 40% have them set up to use. I cant count how often i stick my card in the chip reader part just to be told "that dont work run it like a normal card".
Same i still rare that i can actually use the chip in any store here as well.
 
That will take roughly 90million trips on a DeLorean to bring a USA that is up t today's moderns standards into todays timeline.
I don't have that much fate to an American built sedan :D


Same i still rare that i can actually use the chip in any store here as well.
Walmart's card readers had chip support since like 2008 if not before. I know this because friends from Europe would attempt to insert their cards and they would totally succeed... Sort of. Only to have the terminal either tell them to swipe the card or do nothing at all. It was the software that didn't support it in the US.

They replaced and updated most of their card terminals recently though. I suppose even though the old terminals were physically capable of accepting chip cards the software was too old and they didn't bother attempting to update the old ones. It was simpler to replace them.

But I'm pretty sure most of the old card reader terminals were the same globally hardware wise. They supported swipe and chip. Except in the US the chip part was never enabled.
 
I call bullshit on those statistics. Sure 76% may have the chip readers but of those maybe 40% have them set up to use. I cant count how often i stick my card in the chip reader part just to be told "that dont work run it like a normal card".

Pretty much every chip reader in my town has tape over the slot to stop people from trying it. Walmart and Jimmy Johns are the only two who actually make you use it, and it does take a long time to read. You know its slow when the guy at JJ can make the sandwich faster then it takes to pay for it.
 
My thought is that most fraud has never been in the mag stripe, but the reader. What's to stop them from hacking the reader with a firmware update? Hackers will always win.
 
All this does is slow down transactions. In every instance where I've had to use the damned chip reader style terminal since I've had my "chipped" VISA debit card from my bank it's taken much much longer to process a transaction. Getting the card into the slot, waiting for it to read the chip, then removing the card takes roughly 15x longer to do than just a swipe which is like 1/2 second at best and works just fine.

I understand the concept behind all this but when it comes right down to it this is another case of technology not particularly making things easier or more efficient overall. Sure as time passes they''ll get better readers, faster transactions, etc, because technology does progress as time passes but, for the moment it's nothing but a major PITA for the overwhelming majority of consumers with every transaction they're having to deal with.


Soooooo, 7.5seconds instead? Worth it. The slowdowns I saw initially have dissipated and it seems they're processing quicker. I don't mind it now.
 
Ideally they get rid of the magnetic strips entirely. Everything goes chip 100%. Or chip plus signature.
 
Had the cards forever now. Many merchants still can't use it in my experience...
 
My wife's chip card was cloned and used fraudulently. These aren't any more secure, and seem to take significantly longer.

What a crock of shit
 
My thought is that most fraud has never been in the mag stripe, but the reader. What's to stop them from hacking the reader with a firmware update? Hackers will always win.

There are people who commit fraud by copying the card magnetic stripe onto blank cards, equipment to do this is pretty cheap.
If everyone switched to chip readers, that type of fraud would go away.
 
My wife's chip card was cloned and used fraudulently. These aren't any more secure, and seem to take significantly longer.

What a crock of shit

Likely they just cloned the magnetic strip and then swiped it at a store that still does not use a chip reader.
As long as some stores still allow people to swipe card, crooks will keep cloning them.
 
just because they use the chip almost 90 percent of the stores except for target are using the pinn..

So yeah it might be harder to intercept the buffer overflow and hack the card system remotely because of the chip but anyone can steal credit cards go to the local store and use it at any vendor. Heck some vendors dont even use the chip reader. . and we are still swiping
 
Likely they just cloned the magnetic strip and then swiped it at a store that still does not use a chip reader.
As long as some stores still allow people to swipe card, crooks will keep cloning them.

Working retail, we have had quite a few cards cloned and used with a cloned chip to make fraudulent purchases. One person called to say someone had bought $1000 in gift cards, yet she lives over 50miles away and the customer had used a chip.

It's already cracked in Europe, and already cracked here with the most fraudulent claim being Chase and Chase Freedom.
 
I hate the chip, and prefer to use cards without one, as it's significantly slower, on top of that, when you insert the chip, most people then let go of the card, which means the card momentarily is no longer in your possession and could be picked up by a potentially nefarious person, or just left behind. The slowdown alone is enough to piss me off every time i have to use it, especially if you try swiping first only to be told to use the chip instead.

I'm finally becoming a grumpy old man, thanks alot chip...
 
Even with the chip you just need to fake that your chip is not working and most of the shops will revert to the old magnet swipe.
 
Oh boy, like watching a bunch of tards trying to hump a door knob!
 
Lol what, here in Finland, I believe the last time I hand-signatured and didn't use chip+pin was circa 2009-2010. And even back then it was just single major store chain that had not moved on yet.

It's fast and secure enough here.
 
Chip and signature is a joke, only slighly less of a joke than swiping the mag stripe. The problems though as people have pointed out with chip cards in the US...

The readers are slow as dirt(some take 10 seconds, some take 60)
90% of the time you go to insert your card, the chip reader isn't enabled anyway and you still have to swipe(I've used the chip on my card maybe once in the past 2 weeks, that same card is sometimes used 2-3 times a day)
The chip on the card doesn't actually prevent the card from being cloned due to the swipe option.
A large portion of businesses still insist on taking the card from you to swipe themselves(and at some places it even leaves your sight, so who knows whether or not its getting swiped through a pocket scanner)
Checking my ID for large purchases? LOL, that's happened once, possibly twice this year?

The retailers don't give a damn, the card companies don't want to bother, the general public has no clue even though CC fraud is a constant problem and it seems once a week there's some company in the news with info getting stolen. Basically, the whole thing in the US is a giant shit show that no one wants to do anything about.
 
Just going to move online.

There is a HUGE surge in card not present fraud. Also, in the past when a major breach happened we wouldn't see the fraud for at least 6 months giving us time to react. They are getting the lists out so fast (and they do get the number, first two lines and cvv in almost every breach). Since we mass reissued our plastics to EMV last October we have seen 3x the fraud.

US should have bypassed EMV and went straight to tokenization. My advice, work with a financial institution that allows card controls. We have an app (hate that word) that will allow you to set times when your cards are inactive, such as when you are sleeping, territories where it will work, a kill switch, and so on. If consumers and the FI's really push we can limit this shit.
 
Chip and signature is a joke, only slighly less of a joke than swiping the mag stripe. The problems though as people have pointed out with chip cards in the US...

The readers are slow as dirt(some take 10 seconds, some take 60)
90% of the time you go to insert your card, the chip reader isn't enabled anyway and you still have to swipe(I've used the chip on my card maybe once in the past 2 weeks, that same card is sometimes used 2-3 times a day)
The chip on the card doesn't actually prevent the card from being cloned due to the swipe option.
A large portion of businesses still insist on taking the card from you to swipe themselves(and at some places it even leaves your sight, so who knows whether or not its getting swiped through a pocket scanner)
Checking my ID for large purchases? LOL, that's happened once, possibly twice this year?

The retailers don't give a damn, the card companies don't want to bother, the general public has no clue even though CC fraud is a constant problem and it seems once a week there's some company in the news with info getting stolen. Basically, the whole thing in the US is a giant shit show that no one wants to do anything about.
Merchants don't care because they get their sale and your community banks and credit unions foot the bill.
 
Lol what, here in Finland, I believe the last time I hand-signatured and didn't use chip+pin was circa 2009-2010. And even back then it was just single major store chain that had not moved on yet.

It's fast and secure enough here.

Only for card present. Card not EMV can do nothing to protect. On my third post I will give a caveat - I have not used cash in 8 years, have been on almost every major breach (I know because I get the reports) and have yet to have fraud other than a Vegas cabby charging me 3x.

Sorry for the spam, but I'm passionate about this. Lately a 1/4 of my day is spent talking about limiting fraud and it's frustrating.
 
Walmart's card readers had chip support since like 2008 if not before. I know this because friends from Europe would attempt to insert their cards and they would totally succeed... Sort of. Only to have the terminal either tell them to swipe the card or do nothing at all. It was the software that didn't support it in the US.

They replaced and updated most of their card terminals recently though. I suppose even though the old terminals were physically capable of accepting chip cards the software was too old and they didn't bother attempting to update the old ones. It was simpler to replace them.

But I'm pretty sure most of the old card reader terminals were the same globally hardware wise. They supported swipe and chip. Except in the US the chip part was never enabled.


Walmart IS big indeed but is still just one chain. 2008 is still very much "behind" the schedule. Thats only 8 years back or around half way the time they got introduced over seas.
My first trip to the states before i moved here i was "Shocked" ( to strong of a word) a bout the simple swipe and sign. there has never been a sing on cards in my lifetime overseas it has always been PIN.

But the PIN/Chip is just half of the mess of the payments system in my eyes. reoccurring payments gets bound with the cardand not the account behind it. So if you loose or get your card stolen and a new one is reissued. you need to change everything. when wife and i finally got chip cards here we had to go through all our account to set up automatic payments again.
this is an unneeded step in other countries cause its bound to you account behind the card. you just get your pre-statment then you can say not to any upcoming chages if you want and if you just don't give a f... everything just keeps working even with new cards and blah blah blah.


There are way smarter system in place and working. but if you never experience them it hard to know exactly how inefficient and unneeded complex the current one is
 
All this does is slow down transactions. In every instance where I've had to use the damned chip reader style terminal since I've had my "chipped" VISA debit card from my bank it's taken much much longer to process a transaction. Getting the card into the slot, waiting for it to read the chip, then removing the card takes roughly 15x longer to do than just a swipe which is like 1/2 second at best and works just fine.

I understand the concept behind all this but when it comes right down to it this is another case of technology not particularly making things easier or more efficient overall. Sure as time passes they''ll get better readers, faster transactions, etc, because technology does progress as time passes but, for the moment it's nothing but a major PITA for the overwhelming majority of consumers with every transaction they're having to deal with.

Oh no! God forbid you have to wait a few seconds! Oh what will we do!?!?!?
 
My family is been on restaurant business for last 30 years. For the last 2 yeas, we are also accepting online payments. Last month some guys used some fraudulent methods to hack into the payment system. This happened several times and faced huge chargebacks to the real owner of the card.
Now the site is using a new payment service and I believe it is secure as they are operating Globally. As a tech guy, I was the first person who is responsible to handle such situation. We were using a local payment gateway, I believe a security loophole in their payment system helped hacked to break their system.
 
Even script skidies are now capable of doing such unethical methods. After this incident, I researched on this matter and found that even a loophole on our site can also be responsible for an attack. This is a good article discussing Credit card attacks against business which small business owners need to take care about websites 6 Ways To Prevent Credit Card Fraud | MerchACT. its better to create a Fraud Prevention Policy to avoid serious financial injury to our business. l
 
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