If a hacker stole the EMV-chip information from one specific point-of-sale, typical card duplication would never work because the stolen transaction number created in that instance wouldn’t be useable again and the card would just get denied. Unlike magnetic-stripe cards, every time an EMV-card is used for payment, the card chip creates a unique dynamic cryptogram transaction code for every transaction that cannot be used again.
EMV technology will not prevent data breaches from occuring, but it will make it much harder for criminals to successfully profit from what they steal. Experts hope it will help significantly reduce card-present fraud in the U.S., which has doubled in recent years as criminals have shied away from countries that have already transitioned to EMV-cards.
When an EMV card is inserted, data flows between the card chip, the terminal and the issuing financial institution to verify the card’s legitimacy and create the unique transaction data.
For more information visit: www.smartcardalliance.org/publications-emv-fap/