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Continued: Next-generation credit cards aren't foolproof

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Last update: January 19, 2014 - 6:39 AM

All payment credentials would be stored behind an encrypted firewall accessible only through strong authentication with only indecipherable tokens provided to the merchant for transaction authorization, Crone said.

“EMV as a fraud deterrent is a complete joke,” Crone said.

Still, proponents say it’s a vast improvement over the magnetic stripe system. Regardless of whatever percentage of fraud EMV doesn’t prevent, it’s better than where we are now, said Madeline Aufseeser, a payments analyst at Boston-based Aite Group.

Litan, at Gartner, agrees. Ultimately, the security arguments over EMV are “a red herring,” she said. It’s not perfect, Litan said, but EMV will significantly improve security compared to magnetic stripes and is the most realistic approach given its widespread adoption everywhere else. Companies will have to layer on other protections to thwart card-not-present fraud.

“It’s crazy to say don’t lock your front door because someone will get in your back door,” she said. “You’ve got to lock both.”

“There really isn’t any better proposal out there.”


Jennifer Bjorhus • 612-673-4683

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