During the 11 p.m. edition of WFLA Channel 8 News, John Goldsmith discussed a recent security threat aimed at consumer credit cards with encrypted chip technology. Evidence suggests that chips have been removed from credit and debit cards, enabling thieves to use the stolen chips to access cardholders’ funds. In many cases, the stolen chip will be replaced with a “dummy chip” to cover the fact that the card has been compromised.
“What would typically happen is they would take that chip, they would put it in another credit card,” Goldsmith explained. He also suggests that this new security risk won’t be the last, as cards will be subject to security risk until we reach the level of “quantum computing,” which could take many years. In the meantime, one option is to move to a “chip and pin” system for both debit and credit cards, which would require a pin number for all transactions. However, that technology could be delayed by the high costs it would impose on both banks and retailers.
Goldsmith’s interview is available in the video below, and can be viewed on the WFLA Channel 8 News website here.
