I woke up to a start last week when a message flashed onto my screen “OTP for your debit card ending***’’.I panicked as I had not initiated any transaction so who could have requested for an otp on my card. I immediately concluded that my card had been hacked so without wasting any second I picked up the phone and dialled my personal banker hoping and praying silently that I was not the latest victim of the cyber fraud.
Fortunately my shock and grief lasted only for seconds, when I was told that it was a system generated OTP in compliance with the RBI guidelines that was approaching its deadline.
‘’ The Reserve Bank of India (RBI) has asked all the banks to replace their customers’ magstripe based old ATM cum debit cards with new EMV (Euro pay, MasterCard and Visa) chip based ones. According to the RBI circular, dated August 27, 2015, the last date to comply with this order is December 31, 2018. Post the expiry of deadline all the magstripe based cards will become inactive.’’
So what are these guidelines and what is it all about:
What is EMV card?
EMV stands for Europay, MasterCard, Visa. It is the global standard for chip-based Debit and Credit Card transactions. It is a joint effort between Euro pay, MasterCard and Visa to ensure security and global acceptance so that MasterCard and Visa Cards can be continued to be used globally.
Why EMV Cards?
Unlike traditional magnetic-stripe cards, every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again. EMV protects against counterfeit cards by creating unique transaction data so that any data that fraudsters may intercept could not be used in subsequent transactions.
Why replace magnetic stripe ?
Magnetic stripe technology is fairly simple by today’s standards. After remaining king for almost 4 decades the magstripe is losing its charm. Fraudsters have found a leak that they can exploit, so the technology needs a major update.
Magnetic-stripe cards are, well, magnetized. When you swipe them, the payment processor reads their magnetic fields and matches them to your bank account information. The problem with this is that the data is static, making it easier for fraudsters to lift your information and clone it onto a new card.
Can EMV be skimmed or cloned?
EMV cards are primarily designed to prevent fraudulent transactions that take place when someone physically swipes a counterfeit card at a payment terminal.
Every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again.
If a hacker stole the 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 usable again and the card would just get denied.
How do I know if my card is EMV or Magstripe?
Look for a metallic, thumbnail-sized square on the front of the card. That’s the chip. If it isn’t there, you don’t have an EMV card.
Magstripes are present on the back of the card as black stripe.
How do I get my EMV card?
The Reserve Bank of India has already set a Dec. 31, 2018, deadline for banks to complete their migration to EMV chip-and-PIN payment cards, and the commercial banks have already put in place effective structures to ensure easy migration to EMV cards. If you have not received such migration message it is advisable to contact your home branch or apply online for EMV Card.
Are EMV cards solution to all Online Frauds?
The answer is ‘’NO’’
Of course, the EMV chip card can tackle any fraudulent advances in a situation when cards are presented physically to a great extent against cloning, but you are still at risk of frauds during online payments if you share your card details with anyone you don’t know or trust. So remember to stay vigilant and keep such information to yourself.
Written and edited by:
Shivangi Bathwal
dailydelights 