Atlantic Blog

While chip cards reduce card fraud, consumers still need to keep their guard up.  The new EMV cards (chip cards) contain a microchip that generates a unique transaction code every time the card is used at a pay terminal, making it more difficult for fraudsters to successfully counterfeit cards.  If a hacker stole the chip information from one specific point of sale, typical card duplication would never work because the stolen transaction number created in that instance wouldn't be usable again and the card would just get denied.  But, there is still a concern that criminals may find a way to copy or undermine the security of the chip.

Despite the new EMV cards, the threat of fraud from lost or stolen cards remains very real. What can be done to prevent it?

Mastercard has unveiled the next-generation biometric card, combining chip technology with fingerprints to conveniently and safely verify the cardholder’s identity for in-store purchases.  The new card builds on fingerprint scanning technology used for mobile payments today and could be used at EMV terminals worldwide.  Ajay Bhalla, president, enterprise risk and security, Mastercard says, “Whether unlocking a smartphone or shopping online, the fingerprint is helping to deliver additional convenience and security. It’s not something that can be taken or replicated and will help our cardholders get on with their lives knowing their payments are protected.”

When shopping and paying in-store, the biometric card works like any other chip card. You place the card into the card terminal while placing your finger on the embedded sensor on the card.  The fingerprint is verified against the template and if the biometrics match, the transaction can then be approved, with the card never leaving the consumers hand.

Today, the technology is currently being tested in South Africa.  Biometric cards in the US?  Not yet.  Additional trials for the biometric card are being planned for Europe and Asia Pacific in the coming months.

If biometric cards became the norm, then it would add an additional layer of defense against card fraud.  Especially fraud with lost and stolen cards.

For debit card fraud protection, the Atlantic Kasasa debit card also offers chip card technology along with the CardValet® app.  You control when, where and how your Atlantic Federal Credit Union debit card is used.  You can even deactivate the card when not in use.  The Atlantic CardValet® is a free app available for Apple® or Android™ devices.

When protecting your credit card or debit card it is important to remain vigilant.  Be sure to check your account often, and report any unusual activity to your card issuer.

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