Identity theft represents a growing threat to consumers. A study by digital research group, Javelin, estimated that 15 millions consumers were impacted by identity fraud in 2016. The amount of money stolen jumped from $1 billion to $16 billion.
Chip cards, also known as EMV cards or smart cards, are the latest in the industry trend to fight identity theft. After a series of security breaches and data hacks, credit card companies began sending out cards with chips in them to prevent identity theft. Chip cards are now the norm and millions of retailers are rapidly working to get up to speed on chip technology. But how do chip cards work and do they make consumers any safer?