New credit card design may cut down on security breaches - WAFF-TV: News, Weather and Sports for Huntsville, AL

New credit card design may cut down on security breaches


A debit and credit card breach that affected millions of Target shoppers still has many people on edge.

This week, investigators revealed a teenager in Russia may have been involved, but the question still remains whether this could have been avoided and how it could be stopped from happening in the future.

Many security experts and credit card companies believe the security breach could've been avoided with the right card called an EMV card. There is no personal information on an EMV card, and the magnetic strip - which hackers have developed readers for - is replaced by a microchip.

"It will be virtually impossible to crack the encryption and the algorithm," said Andy Anderson, with Approval Payment Solutions. "Even if they were able to crack the algorithm and get into it, when they go to use your card, they'd still have to have your PIN number in order to do the transaction."

Countries around the globe, including most of Europe, already use this technology. The United States would be one of the last to get it.

"It was less expensive to pay the fraud up until the point where all of the other countries went to the chip-based card and all of the fraud began to focus on us," Anderson said.

The switch will be costly, but credit card companies are demanding any businesses accepting credit or debit cards will have to change their point-of-sale equipment over by October 2015 or face higher fees in addition to taking on the liability of any fraud.

Credit card companies will start sending out the new chip-based cards to customers this year. Customers shouldn't notice much of a difference with the switch but are still encouraged to keep an eye on credit reports and bank statements.

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