State bank of India asked their customer to get rid of a conventional swipe card and replace with EMV enabled chip cards. EMV Chips are considered to be safer & prevent credit/Debit cards fraud.
FYI: EMV stands for ‘Europay MasterCard Visa’ while the PIN is an acronym for the personal identification number.
Purpose of EMV
In theory, EMV should reduce fraud because every card transaction requires an encrypted connection between the chip card and the merchant’s point-of-sale terminal. EMV is meant to replace conventional swipe transactions that rely on magnetic strips, which contain data that is relatively easy for criminals to intercept and then copy on to a new card.
Reality of EVM
A new report from the research firm Gemini Advisory has found that, of more than 60 million cases of credit card theft in the last 12 months, a whopping 93% of the stolen cards had the new chip technology.
This represents a major setback for the technology, known as the EMV standard, which is named after the companies (Europay, Mastercard and Visa) that created it.
“45.8 million…records [were] likely compromised through card-sniffing and point-of-sale (POS) breaches of businesses such as Saks, Lord & Taylor, Jason’s Deli, Cheddar’s Scratch Kitchen, Forever 21, and Whole Foods. To break it down even further, 90% or 41.6 million of those records were EMV chip-enabled,” states the report.
How fraud is still possible?
While the EMV standard is supposed to ensure the card data cannot be captured, many merchants are failing to properly configure their systems. This is the problem where banks & merchants are not configuring their systems and keep the system vulnerable.
What is the use of stolen Data?
There are multiple ways cybercriminals use stolen data. First & easy way is to sell these credit cards number in the dark web. A market full of criminals & isn’t public web or apps. The second method is that They create the replica of these cards & use it to withdraw money.