Citibank this week announced that it was replacing the debit cards of customers whose accounts were compromised in the great Target Christmas hack. The names, addresses, telephone numbers and email addresses of more than 100 million Target customers got hacked but Citi delayed replacing them because it didn’t want to unnecessarily disrupt Christmas shopping.
But replacing these cards with the same magnetic stripe technology is like replacing a padlock that’s securing a lockbox with another padlock after someone just used a bolt cutter on it. Look at it another way: the credit card industry is still on dial-up while the thieves are using high-speed broadband. It’s a losing battle and one the reasons why the U.S. retail industry is going to remain a target until it catches up with the rest of the world.
For years, consumers in Europe and many other countries have used a technology called EMV…
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