CEO DATELINE - Association: Chip cards no ‘silver bullet' for security
CEO DATELINE - Association: Chip cards no ‘silver bullet' for security
- October 20, 2015 |
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Walt Williams
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The U.S. may be playing catch-up with the rest of the world in making the transition to credit and debit cards with embedded microchips, but don't make the mistake of thinking the switch is a bulletproof solution for preventing identify theft, the National Association of Federal Credit Unions said in a statement Tuesday.
Most countries long ago made the switch to EMV chip-based cards, which are widely viewed as more secure than the swipe-based technology the U.S. uses. (EMV stands for Europay, Mastercard and Visa.) U.S. financial institutions began the switch to EMV cards on Oct. 1, although the rollout will take years.
NAFCU CEO Dan Berger called EMV cards "an important step" for cybersecurity, but warned it was not a "silver bullet" that will stop all cybercrime. He said retailers and merchants are not subject to the same data security standards as financial institutions, leaving consumers' personal information at risk.
"Cybersecurity is a shared responsibility," Berger said. "Consumers will only be protected when every sector of industry, including merchants, issuers and networks, are subject to robust federal data safekeeping standards." http://bit.ly/1RTXHbz
Financial institutions and retailers have long bickered over who is ultimately responsible for data security. In particular, the two sides have fought overs whether cards should incorporate use chip-and-PIN technology—which required users to enter a PIN number—or to use chip-and-signature technology.
Retailers support using chip-and-PIN technology, noting it is widely viewed as more secure and is used throughout Europe. However, the credit card industry is issuing cards using chip-and-signature, Mallory Duncan, general counsel for the National Retail Federation, wrote in a recent blog post.
"That's like locking your front door but leaving the back door wide open," he said. http://bit.ly/1NSplXO
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