Smart cards can protect consumers from hacking attacks

Smart cards can protect consumers from hackers

Hackers have attacked 40 million credit and debit card numbers and encrypted PIN data - with a focus on credit card security systems.

In a recent security breach, hackers have attacked 40 million credit and debit card numbers and encrypted PIN data - with a focus on credit card security systems.

Security experts say that our smart card technology lags far behind that used in many other countries, many of which could provide stronger protection for consumers.

In Europe, "smart cards" have been the standard for at least a decade. Smart cards - also known as EMV or "chip" cards - have tiny chips that produce a unique code that can only be used one smart card at a time. Experts say smart cards can provide a higher level of encryption and security than the magnetic stripe cards most of the country uses, and are just as easy to carry.

The widespread use of smart cards in this country is already well on its way to increasing security and reducing the incidence of fraud. In the UK, the UK Cards Association reported a 36 percent drop in credit and debit card fraud between 2008 and 2012.

Our country has now begun rolling out smart card technology for the Chinese market, although so far only a small percentage of customers have upgraded to smart cards. Credit card companies say it will take several years to transition, and most retailers and consumers are still confused about the new technology. Once the country fully adopts smart card technology, it will solve the security problem.

In the meantime, the country has lost half a billion dollars to magnetic stripe card fraud, a situation that will change our security with smart card technology.