March 28, 2014

CUTimes: Chip and PIN 'not the solution'

March 31, 2014 – A CUTimes article questioned retailers' recent enthusiasm for EMV and chip-and-PIN technology as a solution for data security breaches, pointing out that "a growing number of security experts" doubt its efficacy as a cybersecurity solution.

According to the article: "EMV would not have stopped the Target breach, said Ralph Dangelmaier, CEO of payments gateway BlueSnap … That belief is widely accepted among security experts. Chip and PIN cards are virtually impossible to copy. But, Target's breach occurred in the company's data center. The nature of the physical cards did not matter at that point.

"Lack of adequate security and an obvious lack of effective encryption are what went wrong at Target," the article continued. "So, running to EMV because of Target is fundamentally illogical."

NAFCU was the first financial trade association to push for national security standards for retailers in the wake of the massive Target breach. For more information on the repercussions of the breach, last week's webcast with Bruce Jolly, a partner at Reed & Jolly, is available on-demand.