"...Computer security researchers at the payment technology company NCR demonstrated how credit card thieves can rewrite the magnetic stripe code to make it appear like a chipless card again. This allows them to keep counterfeiting -- just like they did before the nationwide switch to chip cards... This glaring hole in EMV, the chip-based system, is possible because of the way many retailers are upgrading their payment machines: They're not encrypting the transaction.... ...This latest research shows that retailers could spend millions of dollars upgrading to EMV and still not protect their customers from a massive credit card theft like the Target and Home Depot hacks two years ago...." http://money.cnn.com/2016/08/03/technology/credit-card-chips-flaw/index.html
ACH should setup verification paradigms ensuring encrypted payloads are passing - OR invalidate completely. Could this hole be any easier to plug, or what? Secondly, and so obvious, remove ALL strip activity from POS machines. Answer this question: If the USA (and elsewhere) is now on chip technology why would anyone still be using a magnetic strip for anything other than careless, stupid, virtually criminal negligence. I could fix and eliminate the entire issued instantly. I wouldn't be too popular, but we'ld all be much more secure.