Lexington Law's Consumer Education Specialist Responds to Reports Warning Consumers About Vulnerabilities With New EMV Chip Enabled Credit Cards

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Newly issued chip cards strengthen in-store shopping security while online card fraud projected to spike

EMV cards are designed to provide additional fraud-protection, but that does not mean that consumers should be less attentive when it comes to credit fraud and the havoc it can inflict on one’s credit score

The U.S. payment industry is slowly transitioning to EMV (Europay, MasterCard and Visa) technology, making in-store fraud more difficult to commit, while potentially increasing the possibility of online fraud. Dr. Randy Padawer, Consumer Education Specialist for Lexington Law, a consumer advocacy law firm and trusted leader in credit report repair, warns consumers to stay vigilant when using credit cards.

While countries around the world have been using EMV technology for years, the U.S. is just now adopting the use of cards with microprocessor chips as opposed to magnetic stripe technology. EMV cards in the U.S. will not, however, contain the additional safety measure of a PIN. Essentially, the technology will protect only the number on the front of a credit card or debit card, not the cardholder’s signature on the back of the card, which can be more susceptible to credit fraud.

“EMV cards are designed to provide additional fraud-protection, but that does not mean that consumers should be less attentive when it comes to credit fraud and the havoc it can inflict on one’s credit score,” said Padawer. “The lack of a PIN can leave cardholders open to online fraud in particular, and with the holiday shopping season at our heels, consumers need to be especially alert to criminal activity.”

According to a recent article in Internet Retailer Magazine, “retailers can expect a doubling of online card fraud because criminals will turn to e-commerce to get around a tougher in-store card-payment system,” says consulting firm Aite Group.

Credit card fraud can be an unfamiliar charge found on your credit card statement or noticing that a new line of credit has been opened in your name. Padawer recommends scrutinizing monthly bills and statements to make sure no unrecognized transactions are listed. If a cardholder does suspect unusual activity, he advises to first confirm the breach. Once confirmed, find out exactly what information has been stolen, cancel the card, and reset all passwords. Moving forward, all card statements should be monitored closely and a credit report should be pulled and examined thoroughly for errors or fraudulent activity.    

Padawer adds, “The reality remains that credit breaches will occur despite best efforts to secure personal information. Cardholders should educate themselves on how to spot fraudulent activity, and if they are unable to clear any resulting damaged credit on their own, they should seek professional assistance.”

About Lexington Law
Lexington Law is a consumer advocacy law firm with decades of experience helping hundreds of thousands of Americans work to improve their credit. The firm comprises the largest network of credit repair professionals in the U.S., employing attorneys and paralegals/agents across 18 states. By leveraging consumer rights to resolve issues with creditors, data furnishers, and credit bureaus, Lexington Law works to ensure that client credit reports are fair, accurate, and substantiated. For details about Lexington Law’s services or attorneys, please visit http://www.LexingtonLaw.com.

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Jennifer Price, Sparkpr on behalf of Lexington Law
Lexington Law
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