From 2015 to 2018, merchants who switched to chip readers saw a 76% drop in counterfeit payments. There was also a 49% nationwide drop in counterfeit payments during these years. However, credit and debit card fraud still resulted in losses of nearly 28 billion in 2018. Additionally, your data is also at risk of being compromised. Accidental loss and device theft are the biggest physical threats to your data. Nearly 1 in 5 data security incidents involved device theft or loss in 2017.
In Brazil in 2013, two entirely fake ATMs were found installed on top of existing machines. The ATMs consisted of a disassembled laptop and card reader, complete with a display, PIN pad, and a 3G connection to collect the harvested data.
It’s also important to understand that while it’s much harder to do, chip cards can still be hacked. Also understand, not all chips are equal. In America, chip cards offer more security, but they’re still not as secure as the chip-and-PIN authentication used across Europe. However, there are few card issues among the US who offer chip-and-PIN cards.
Saying this, scammers have two methods of stealing data: skimming and shimming.
Skimming is done by placing a device over the card reader on an ATM or gas pump so that when a customer slides their card, the magstripe data is copied. On the other hand, shimming is done by placing a thin device inside of the actual card reader slot to collect data on chip card. However, shimmers can only copy a limited amount of data- about the same information on the card as they’d get from a magstripe card.
Laptop theft costs businesses more than 8x more than just replacing the device, and 25% of laptops are stolen from the office or a car. To find more words on device loss and data theft, continue reading below.
Infographic source: Computer Science Degree Hub