According to a new report from Barclays, 47% of the world’s credit card fraud happens in the United States, even though Americans only account for 24% of the total credit card volume.
The report says, “The increasing instances of credit-card fraud—and the subsequent hassles, like not being able to use our credit cards or having to replace them more often—are mostly due to the fact that the US still relies on old, faulty technology that the rest of the world moved on from years ago.”
“In the US, credit cards still transmit financial information through a magnetic stripe that is easy to replicate if stolen. Hackers also can remotely install malicious software onto checkout terminals at retail stores to capture credit-card numbers. The data gets transmitted to the cyber criminals, who then sell the information to the highest bidder. These tactics doesn’t work as well in the rest of the world, where most credit cards are now embedded with little chips (often referred to as EMV, for Europay, MasterCard, and Visa) that are more secure because they randomly assign a number to each transaction that changes each time customers use their credit card. Users must also input a personal identification number to verify each purchase,” the report notes.