Swiping a card and signing the receipt has been a muscle-memory reflex for consumers for decades. But that’s the problem — cards still use 1960s technology despite 21st-century cyber threats and criminals who use the Internet to steal money from half a world away.
The good news is that the card industry plans to roll out new cards in 2015 that will replace the easy-to-copy magnetic stripe with a sophisticated computer microchip that is far more difficult to counterfeit. Chip-based “EMV” cards are used in 80 countries and have reduced fraud as much as 75 percent.
The bad news is that U.S. banks don’t plan to replace the signature with a personal identification number the way banks have in the rest of the world. Rather than “chip-and-PIN”….