Swiping credit cards 'leaves users open to fraud'

Tuesday 14 June 2011

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.

Swiping cards 'can be more risky than using a chip and PIN'

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.

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