The Joke That Is Credit Card "Security"
It's Time For Actual Security Features On Credit Cards
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With the newest chip technology in credit cards, I think it's time to go over how flawed and unsecure our current credit cards are.
The newest "great" feature being added to many credit cards is adding a chip to the card. A unique one time code is generated and makes duplicating your card next to impossible. That's great, but if I were a criminal, duplicating credit cards would be so far down my list of ways to beat the system, that the feature is rendered pretty useless.
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Not only does this add another part to the card that can wear out like the magnetic strip can, but also forces merchants to change their credit card systems. Also there is a much higher probability of forgetting your credit card while it is inserted in the card reader.
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I'll quickly go over a few other "security" features and the glaring flaws with each of them.
I'll start with the front of the card. I've never had a merchant check to see if my name matches my gender. While not a security feature, I would think it would make sense to at least see if "Benjamin" is a reasonable name for a girl using a credit card. I've given my card to many other people male and female and none have ever had any trouble using my card.
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On the back of every card is a "Not Valid Without Authorized Signature" box that is supposed to be signed before the card can be used. I'm going to wager a guess that many of you have unsigned credit cards in your wallet that you use daily. Even if you have signed the back of your card, getting the electronic box you have to sign to look the same as your own signature is next to impossible. I've purposely not signed my card to see if anyone would reject my card for this most heinous infraction. So far it's been over a year of "invalidity" and nobody has questioned my invisible signature.
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There is a credit verification value on the back of the card that is supposed to make sure that you have the card in your possession and the expiration date on the front, but since this code and expiration date are visible to all, if you can write down 3 numbers on the back and an expiration date, you will have cracked this most difficult security feature. You no longer need the physical card to make purchase online.
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There is also hologram on the back, but I don't even know why they bother with it, since I've never ever seen someone reject a card for a hologram related issue
This is not a how-to guide on how to steal from others, but I am going to show you how easily I could take a credit card and make purchases and get away with it.
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All you need to do is take a picture of the front and back of a card, get a vpn, order online with the credit card, send the product to a house that is not your own, and then go pick up that item to enjoy or sell. I couldn't care less about a new chip and how it prevents me from making a duplicate card when all I need to do to order online is to take two photos.
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How do we fix this?
While there is no foolproof way to prevent a criminal from coming up with a way to steal using your credit card if you are determined enough, there are a few features that I feel would greatly improve the security.
Two factor authentication (More detailed information here) is becoming more popular and while someone can take a picture of your credit card without you knowing, it is harder to notice when your phone is missing. The two factor authentication I use emails you that an account has been used and texts a code to your phone to enter that changes every 30 seconds. Unless someone has your phone and knows how to unlock it, they will have difficulty completing transactions.
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Fingerprint scanners could also add a layer of security. While not perfect or cheap, two factor authentication and fingerprint scanners could make credit cards far more secure than they are at the moment.
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Credit card companies actually plan on a certain amount of fraud to take place and will reimburse losses at their own expense. If they had stronger security features, the millions of dollars in fraud they face each year would be drastically reduced. Customers would also greatly benefit from this, because as the victim of credit card hacking, it is an extreme hassle to have to activate a new card, go back and change any autopayments charged to your card and file tickets to get the money that was fraudulently spent by thieves.
It's time for credit card companies to actually make real security features and stop being the punchline to the joke that is credit card security
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I agree with you on this! It's a silly way to prevent your card from being stolen, but at the same time. I wouldn't want them to do anything with fingerprints. I would feel that it's a violation of privacy, I also wouldn't want to touch something like that directly, It's dirty. I know doorhandles etc are the same thing but still! LOL.
I like your phone thing! Maybe getting rid of the physical card would be a better way of doing it!
I've been using the chip thing, And it annoys me. I've almost forgotten my card multiple times already. I wish we could scan it really quickly instead. Not leave it in there.
I actually had an old coworker who stole my credit card info, Because I was dumb enough to leave my wallet at work. She didnt' take the card, She just wrote down/took a photo of the info, Luckily I got my money back. She only spent 40.00 but I've been paranoid ever sense.
I think both 2 factor and fingerprint should be optional features you could add for security if you wanted. I know a database of fingerprints may may people leery that big brother will somehow turn his eyes onto daily transactions and find criminals in a database like this. You are correct though, it is dirty. I like the 2 factor best as a solution, but feel if people don't want that security feature they should not be forced to do so, but possibly pay a higher interest rate, because there would be no question it is safer to have this system in place than a few of the current ones.
Nice article. I thought to order things online the card-processor also checks the address of the cardholder, especially if it's a big purchase.
Additionally Visa in the UK at least have used "3D secure" for online payments - Mastercard have something similar but I'm not sure what it's called. Anyway if you're using an unfamiliar device and making a big purchase it may require a certain password that you set up the first time.
If you look on the dark web there are huge amounts of information and tutorials about this - it's called carding. A lot of the information is rubbish and dud. But there are certain organised groups who do it successfully and teach how to do it.
P.S. I'm not advocating you do this or look into any of this. But I'm just stating what I'm aware of. It's actually much harder than you think.
Furthermore if you did carry out card fraud you'd be in constant fear and paranoia of the police and banks catching up with you. And that's no sort of life.
Blah blah blah. Thanks for posting.
That may be true for large purchases, but if I were to steal a card, I would buy small purchases or gift cards so as not to alert the company or user of the theft.
I have never stolen a credit card, but I do have some experience in knowing how to beat the system.
For those who wish to steal or fraud credit cards it is far to easy to use the info online. In person you need more features and have the chance to be caught on camera at the point of service where you check out.
Online with a VPN is extremely difficult to track and unless you have stolen tens of thousands of dollars, I believe that usually the fraud department will dole out money to cover the cost instead of hiring a team to find the person behind it. There is simply too much fraud to track down small infractions.
Yeah I can imagine they would do that to avoid paying investigators.
If Steemit doesn't pay off you know what I'll be up to :P
(Or not, considering that I've now admitted this on the blockchain!)
Haha! If my Grandma could do it, it's easy enough for anyone to do. You could accidentally find a card you thought was yours and make purchases on it only to find it is really someone else's.
If this can happen accidentally, imagine the havoc that can wreaked by a skilled criminal.
Security is an illusion created to keep people from chaosing and panicking.. Although online shopping still remains unsafe, it's very likely that chip based card can be secure in case of physically stolen. I don't know about other countries, but in my country, when you use your card in the machine, it asks for pin number. But the article was helpful to understand other methods as well.. Thank you :)
There is not a pin needed here to go with the chip (even debit cards have this feature). I'm sure there are still many who try create duplicate cards, but I'd be leery of being caught on camera using the card once stolen. I'd focus all efforts on online thievery and probably go for a while without being caught if i were to make smaller less noticable purchases.
I think the ideal credit card should have a high rewards rate, low interest rate, and currency surcharge, and offer free benefits such as airport lounge access, golf rounds/lessons, etc. For example, the AmEx Platinum Credit Card probably has the highest membership fee in the Indian credit card market. The benefits it offers justify the high membership fees to some extent. Although the membership fee is high, it has provided various 100% cashback offers over the past year, such as the recent 100% cashback offer of up to Rs. You may still want to compare the American Express Platinum Card benefits with those of the HDFC Infinia and ICICI Emerald credit cards, so you'll want to know about https://cardinsider.com/best-credit-cards-india/.