Swiping credit cards 'leaves users open to fraud'
Article by Mozo
Australians have been warned to be wary when using their credit cards on shopping trips and to opt to use chip technology wherever possible.
Peter Arnold, financial analyst at Canstar Cannex, observed that 76 per cent of new pieces of plastic have a chip up 64 percentage points compared with three years ago, reports National Features.
However, he urged Aussies not be complacent when shopping, because the success of chip technology in preventing fraud relies on merchants having a chip and PIN device.
"If the card reader does not have a chip reader, users will still need to swipe their card so will still be open to skimming," he warned.
Skimming involves the theft of credit card information during a legitimate transaction and is usually done by someone photocopying receipts or using an electronic device to swipe and store the details of the intended victim.
Mason Hooper, RSA Security fraud specialist, said this method can be easier than stealing a wallet.
Have a question about credit cards? Ask the money gurus at Mozo Answers.