NYS DEPARTMENT OF STATE’S DIVISION OF CONSUMER PROTECTION ISSUES ALERT ON
POTENTIAL CHIP CREDIT CARD FRAUD
The New York State Department of State’s Division of Consumer Protection (DCP) is alerting consumers to be aware the potential fraud associated with new microchip-based credit cards, also known as “EMV chip cards”. EMV chip cards offer enhanced security for consumer transactions because each time an EMV chip card is used it generates a unique transaction code which helps protect consumer data from hackers.
Although EMV chip cards offer better security than traditional magnetic strip credit cards, chip cards are still vulnerable to fraud. EMV chip cards that require a personal identification number (PIN) to be entered at the point of sale to make a purchase are the most secure, also known as “chip-and-PIN” cards. However, not all EMV chip cards are issued with a PIN, and not all stores are equipped to accept EMV chip cards that require a PIN to be entered. In fact, most EMV chip cards in the U.S. require only a signature to complete the purchase, known as “chip-and -signature” cards. Therefore, if your EMV chip and signature card is physically stolen, it is as vulnerable to fraudulent use as the traditional magnetic strip card. None of the EMV chip cards prevent fraudulent use of your credit card for purchases online, by telephone, or for any transaction where your card is not physically present at the point of sale.
Consumers must be alert to a new phishing scam involving EMV chip cards. Scammers, pretending to be credit card issuers, are sending fake emails targeting individuals who haven’t yet received their new chip cards. The emails claim that that in order to issue a new card you need to update your account by providing personal information or clicking on a link to continue the process. By clicking on the link, malware can be installed on your computer or mobile device.
The New York State Department of State’s Division of Consumer Protection offers the following tips for chip card users to protect themselves:
For more information regarding identity theft prevention and mitigation, please contact the New York Department of State, Division of Consumer Protection at (518)-474-8583.