Americans Are Hackers' Favorite Credit Card Fraud Targets
Nearly halfof all credit card fraud around the world occurs in the U.S., although Americans account for just a quarter of global card volume, according to a recent Barclays report, which claims that the reason for the disproportionate fraud is that the U.S. still relies on outdated magnetic stripes, which are easy for hackers to replicate or manipulate. They can also install malicious software in card readers to capture credit card numbers.
In many other countries, credit cards are embedded with chips that are more secure because they randomly assign a new number to each transaction, and users must input a PIN to verify each purchase. While the technology is not bulletproof, the adoption of chip-and-pin technology in the UK in 2003 has led to a 70-percent reduction in counterfeit fraud in the UK over the past decade, according to Barclays.