The credit card industry is moving to replace magnetic stripe cards with chip security, known as EMV. Even though chipped cards are becoming more and more standard, many seniors may not be aware that these changes are happening. It can be helpful to share details about these technology changes with seniors and explain why they are beneficial to cardholders.
Why Chipped Credit Cards Reduce the Risk of Financial Fraud
Chipped cards are far more effective at reducing the risk of fraud. Magnetic stripe technology has been around for years. Some tools can be used to clone these cards easily. A scammer could buy the equipment for as little as $20 and make a cloned copy of the magnetic stripe on the credit card.
But, the new chip technology is difficult to duplicate. The data on the card is always changing, making it hard to extract and isolate. This type of credit card can’t be quickly duplicated.
Additionally, credit cards that use chips and pins use sophisticated encryption codes, helping to ensure that the payment is going to the right destination.
Security for Credit Cards
Just because a senior transitions to a chipped credit card doesn’t mean that they are safe from fraud. The card should be kept out of sight and locked up when possible. A lockbox is a great solution to keep the credit card information out of the hands of caregivers and other people who are coming into the home. Also, keep an inventory of all credit cards and bank accounts so that balances can be watched for unusual activity.
Seniors have a hard time keeping up with technological changes. Now more than ever, it’s important that family members offer assistance and advice with such timely developments. For more information about reducing the risk of fraud and other forms of elder abuse, contact us at info@SeniorSafeAndSound.org or 858-480-7551. Senior Safe and Sound.
This information is intended to inform the public at large about this important issue. It is not intended to serve as legal advice.