Why You're Still Not Safe From Fraud If You Have a Credit Card With a Chip

When it comes to stealing credit card information, it's unfortunately as easy as swiping your card in any skimming device.

Credit card fraud is now a $16 billion a year problem in the United States alone, and every hour, thieves with skimmers are stealing Americans' credit card numbers.

"When the magnetic stripe was created, identity theft wasn't an issue. And so the data was never properly encrypted," Robert Siciliano, a cyber-crime expert, told ABC News' "Nightline."

Credit card thieves can use a skimming device to swipe data through credit cards' magnetic strips.

"[Thieves] can use those 16 digits over the phone to place a phone order. They can use them online to plug it into a website, or they can actually clone a card. They can burn the information onto a blank ATM or credit card and use that out in the wild," said Siciliano.

The latest weapon in the U.S. to fight against credit card crime is the newly issued chip technology and signature card, which is supposed to eliminate the cloning of your credit card. You may have recently received a new card with a chip, which holds your encrypted data, from your bank.

But even with the added protection of a chip, Siciliano says credit card fraud is still possible.

"Skimming is still alive and well, and it will continue to be alive and well as long as that magnetic stripe is still on the back of our cards," Siciliano said.

Because it's taking a lot of time and money for businesses to make the switch, most cards now have a chip and a magnetic strip that still contains personal data on it, making you still susceptible to thieves with skimmers.

"[Thieves] could easily have what's called a wedge-type device, a small skimming device. They could grab all the information off of it and they could actually create a whole other credit card, so watch them closely," Siciliano said. - Read More at the abcnews
Why You're Still Not Safe From Fraud If You Have a Credit Card With a Chip

Why Chip Credit Cards Are Still Not Safe From Fraud Video ...Nightline