Credit Card Chips Fail to Halt Fraud, Survey Says

No, this is not what I meant. I meant that creditcards work a bit different in the US, they make it easier to loan money and get into debt problems. I just found out that on my account I can take a maximum of 500 euro of debt, but I will have to pay a high percentage of interest. But anyway, it should be hard to commit fraud with a chip based PIN or creditcard. Online we use a system called iDeal, creditcard skimmers on hacked websites won't work against such a system.

https://en.wikipedia.org/wiki/IDEAL

 

This discussion is about card skimmers physically attached to card readers located at gas stations and other like non-monitored locations.

Actually, this mechanism is to protect the merchants; not the cardholder:

Further proof of this and why I certainly wouldn't use it is:

 

Yes I know, I'm just saying that there are ways to secure creditcard transactions, both online and offline. And the way to prevent online fraud is very simple, simply do not buy stuff from non-reputable online shops.

 

Just use paypal + 2FA, duh

 

I am at a loss at understanding how this works.

Appears the CCV codes are stored internally on the card and are then correspondingly stored on some authorization server with links to the associated card number. Every hour the CCV code changes on the card and the corresponding in use CCV code pointer updated on the server. That sounds like a lot of computing power number needed depending on the number of cards issued by a bank.

Assuming that "0" is not allowed a leading digit, that results in 900 maximum uses of the card without reuse of any previous combination. So I assume previous CCV combinations would be reissued at some point.

 

Here's some additional information, but it's not clear how the card issuer determines if the card verification value ( CVV ) supplied during the transaction is valid. Maybe they are intentionally not disclosing how it's done?

https://www.pymnts.com/news/securit...ds-80-want-this-credit-card-security-feature/

 

Here is some other stuff called "tokenization" that will make creditcard transactions more secure:

https://usa.visa.com/visa-everywhere/security/why-tokens-are-good-for-you.html
https://usa.visa.com/visa-everywhere/security/tokenization-explained.html

 

What this does is hide your real credit card number from being known/stored by the merchant. CCV validation is still required for online transactions as far as I am aware of.

 

So I guess this will also stop website skimming attacks.

 

India’s central bank is betting on this technology to make online card transactions safer
January 10, 2019
https://qz.com/india/1519800/rbi-bets-on-tokenisation-to-make-indias-digital-transactions-safer/

 

Apple Card will make credit card fraud a lot more difficult
March 25, 2019
https://techcrunch.com/2019/03/25/apple-credit-card-fraud/

 

I note that EBAY has begun to ice-out PayPal. Instead of enabling payment via PayPal, EBAY often requires a CC number which (they say) won't be made available to the seller but will be retained by EBAY.

I have had to replace my CC 4 times in the past 12 months because the number has been stolen. I am fully convinced this happens when I use drive-through fast food outlets, because that's the only time I relinquish my card & I can't see how it's being handled by the clerk.