On Wed, 6 Jan 2016 03:49:23 -0800 (PST), Cindy Hamilton
> wrote:

> On Wednesday, January 6, 2016 at 3:58:14 AM UTC-5, sf wrote:
> > On Tue, 5 Jan 2016 21:59:56 -0500, Ed Pawlowski > wrote:
> >
> > > The RFID chips are being phased out for security reasons. The new chip
> > > cards have to be inserted if the equipment is available, swiped in the
> > > meantime.
> >
> > I still don't understand how the new chipped cards are any safer than
> > the old style swipe.
>
> The transaction is encrypted with a single-use key, and decrypted
> on the other end. The old-style magnetic strips could be copied
> easily, and there was a whole cottage industry in vandalizing
> ATMs and standalone credit-card readers (like gas station pumps)
> and installing duplicators. The hapless citizen swipes his card,
> the information is read from the magnetic stripe, and the felon
> has a copy of the credit card, to use as he pleases.
>
> The new system is much more complex; it'll probably take some
> time before it's cracked and new fraud arises.
>

The part I don't get is if it's physically stolen, it can be used just
as easily as the swipe card until it's reported - which is when both
types are cut off.

--

sf