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WHITE PAPER: Could growing ATM fraud accelerate US conversion to the chip card?

Level Four explores the growth of U.S. ATM fraud and the measures financial institutions have taken to thwart this trend. The company suggests EMV chip cards (smartcards) as a solution to this kind of fraud.

January 5, 2005

While measures such as Triple DES and encrypted PIN pads address the problem of internal fraud at the ATM, the largest vulnerability remains: the ease in which external equipment can be used to compromise an ATM.  Level Four says that the fundamental problem is that magnetic strip is not secure - and any initiative that fails to address this fails to address the real problem.  The company suggests a method for phasing in EMV chip cards to increase ATM security. According to Level Four, banks that commit to investing in upgrades to support these cards could gain significant competitive differentiation over ISOs.

Click here to read the full white paper.

Editor's note: This white paper was provided by Level Four. Statements made in the text reflect the views and/or opinions of its author(s) only.