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US EMV effort raises hackles of fraud watchdog

Consumer advocate ProtectMyData argues that the chip-and-signature implementation favored by US financial institutions lacks teeth.

October 2, 2015

In the wake of yesterday's EMV liability shift, at least one domestic watchdog group has pronounced itself unimpressed.

ProtectMyData, a consumer education effort advocating for the use of EMV chip and PIN in the U.S., issued a scathing statement summing up the post-Oct. 1 payments situation. According to founder Debra Berlyn:

Following months of noise from financial institutions, the liability shift deadline for the transition to EMV technology has finally arrived, and the hype has proven to be just that — noise.

According to recent numbers,6 out of 10 U.S. consumers are not readyfor the EMV shift. Add to that VISA's most recent numbers indicating thatless than one-fifth, or 18 percent, of their 720 million debit and credit cards contain the embedded microchip. ...

But more than the lack of readiness, Berlyn disparaged the choice of chip-and-signature over chip-and-PIN for the U.S. market:

The move to chip-only EMV technology is a half-measure put forward by the big banks and credit card issuers who do not want to bear the financial burden in the event of transaction fraud. ...

Oct. 1 has proven to be nothing more than a date; a false deadline that has changed little in the effort to seriously reduce credit card fraud. As such, it's time for financial institutions to reevaluate their lack of progress and make chip and PIN cards the standard for consumers across the country."