New security warning about chip credit cards

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New security warning about chip credit cards
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Chip credit cards, or EMV credit cards, are the new standard in credit card technology.

Unlike magnetic stripe cards, the card chip creates a unique transaction code that can’t be used again, which is why they’re generally more secure, CreditCards.com reports.

But recently, a new security risk involving chip cards has been uncovered.

Read more: New tool offers credit card perks without debit card dangers

Chip card warning: What you need to know

Investigative reporter Jason Knowles of WLS-TV in Chicago says the chip in his credit card fell out, but he didn’t notice it for days because so many places still let you swipe your card.

When he called his bank to tell them about it, they said a fraudster could pick up the chip and use it on another card.

Although the chances of this happening seem pretty slim, you would want to get a replacement account and card — just like if your credit or debit card were stolen.

Also, it’s a good idea to activate email or text alerts with your bank to know whenever your card is used.

Read more: These 7 credit cards have the most potential fees

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Mike Timmermann About the author:
Michael Timmermann paid off his mortgage in two years. Now, he shares his money-saving tips on his blog, Save on Almost Everything.
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