EMV may have some security flaws, according to a statement by the Federal Bureau of Investigations (FBI).
EMV, the cards with chips embedded into them, are quickly replacing magnetic strip credit cards as the new credit card standard. The reason for this was increased security measures, or so we thought.
EMV is commonly referred to as "chip and PIN," but while that may be true for the most of the world, it's a bit of a misnomer in the U.S.
EMV is the global standard for credit card payments, and has been for sometime. It got the "chip and PIN" moniker from how it is used. Customers insert the chip end of their card into a reader and enter a PIN to authorize the transaction.
The U.S. is only just now adopting the new standard, but are doing so in a way different from most other countries in the world. Instead of entering a PIN, American consumers will simply sign for their purchase in the same way they did for older cards.
Though EMV is more secure than magnetic strip cards, the FBI claims that a PIN is needed for the extra measures to have their full effect.
"When using the EMV card at a point-of-sale terminal, consumers should use the PIN instead of a signature," the FBI said in their statement. "This fully utilizes the security features built within the EMV card."
While the FBI recommends using a PIN as much as possible, many cards will not come with one automatically, so users have to contact their issuer to obtain it.
Retailers who want to accept PINs may only need to upgrade their credit card payment software. For those interested, be sure to contact 911 Software today