As a reminder ... this post was made awhile back:
Gorilla_88
Re: Discover switching from Chip/Signature to Chip/PIN 04-28-2016 03:07 PM
Chip and PIN is always being spun (as it is in the article) as being safer for consumers. In reality, it's only safer for the banks, and it's incredibly harmful to consumers. Having worked for several years in the banking industry in Canada, I can tell you exactly what chip and PIN means. It means that you, the consumer, will be on the hook for ALL fraudulent charges on your credit cards wherein a PIN was used, because the banks claim that only you could have used the card (since nobody else is allowed to know your PIN). Alternatively, if you gave someone your card and PIN (perhaps a spouse), you're still on the hook because you're responsible for violating the TOS of your card.
Banks claim that a chip and PIN transaction cannot successfully go through if the PIN is entered incorrectly. This is entirely false, but they will use this argument to PIN the phony charges on you, the consumer! What the banks don't--and never will, tell you, is that chip and PIN has been flawed from the very beginning. Smart criminals have long been able to trick card terminals into thinking that a wrong PIN is actually correct. When a trace is performed to see if a PIN was used for a transaction that you've reported as fraud, a simple Y or N answer comes back. Even if the PIN that was used was wrong, and the criminal tricked the terminal into thinking it was correct, a Y (meaning that Yes, a PIN was used, and therefore you must have done the transaction yourself) will come back in the report to "prove" that the transaction was legit. And who pays for the fraud when this happens? You! Not the bank, because their argument is that you must have made the charge. The burden of proof is 1--% on you to prove otherwise.
During my time as a banker I have seen numerous fraud victims further victimized by having to pay for the fraud themselves. And many of you will argue that the banks won't make people pay because they have always absorbed fraud themselves in the USA. But what you're not considering is the fact that they will now be able to reword their credit card agreements to pass liability over to the customer while still claiming to absorb all fraudulent transactions themselves. When they change the definition of fraud, they can literally pass the actual fraud on to you, all the while claiming that the charge wasn't fraudulent at all, but a completely legitimate charge. Every Canadian bank has been doing this since the day chip and PIN first came in.
Everyone that thinks chip and PIN is a good thing for consumers is in for a very rude awakening if and when their account is fraudulently used with a cloned card and a fake PIN. My advice is to hold onto your cards with the grip of death, keep your limits relatively low (to limit your losses in the event of a fraud), and set text and e-mail alerts for absolutely everything you possibly can. It may not protect you entirely, but you've got to take every possible measure to protect yourself if chip and PIN comes in.
G
