Why The EMV Chip isn’t Enough


Banks introduced the use of EMV chip in the U.S. back in 2015 announcing it as the latest solution to help lower the credit card fraud incidents.

While the EMV chip is a step in the right direction, the chip alone still isn’t enough to combat fraud. As a matter of fact, banks are still losing money and their customers are still getting hacked. In spite of protection from the EMV, credit card fraud is expected to increase from $4 billion in 2016 to $10 billion in 2020 according to research from Aite Group.

Below are some of the security challenges the EMV chips have.


  1. Faulty Two-Factor Authentication

The EMV chip is an innovative security safeguard, designed to protect in-person / in-store purchases. Yet credit card companies paired it with a primitive type of verification: a signature.

A PIN is a higher form of verification because only one person has access to it. A signature can easily be forged and duplicated, and most stores don’t check to see if the signature matches the signature on the back of a credit card.


  1. Identity Fraud / New Account Fraud

Over the past six years, fraudsters have stolen $112 billion from banks with identity fraud, which equates to $35,600 per minute. With a new roadblock to faking in person purchases, thieves are using people’s information to open new credit card accounts and other forms of accounts.

In 2016, identity fraud was at its second highest level in the past six years.  New- account fraud accounts for 20% of all fraud losses and in 2015 when the EMV chip was introduced to the U.S., the loss of new account fraud rose from $2 billion to $3 billion.


  1. Online Fraud

A large amount of online credit card fraud is happening due to the introduction of EMV. Javelin found that the number of victims of card-not-present fraud reached 6 million in the United States in 2015, up from 4.8 million in 2014.

A study by iovation / Aite Group estimates hackers will steal $7.2 billion with the use of stolen credit card numbers online and in mobile channels.  In the first 3 years after the EMV was introduced to the UK, online fraud rose 79%.

Hackers will continue to commit online credit card fraud because there’s no safeguard and there’s a trend of online shopping. According to a survey by United Parcel Service Inc., Americans make more purchases online than in the store, which means higher rates of online credit card fraud.

Solution: Stop all forms of fraud with Gardevant

The Gardevant Card is the solution to all forms of fraud because it requires a foolproof form of authentication for in-store and online purchases.

The Gardevant Card is a multimodal biometric card, and no type of purchase is authorized without the authentication of the user’s fingerprint. In addition to biometric verification, the Gardevant Card is encrypted to protect all funds in the case of a security breach.

For more information, visit our website and contact us at info@gardevant.com to learn more.











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