(DFW.CBSLOCAL) — DALLAS – It’s a tiny chip that elicits big opinions.
Meant to protect customers from credit card fraud, most cards now have security chips, and many businesses bought the chip readers to go with it. But more than a year after they became common place, research shows that identity theft is actually up.
“With all the credit card hacking and privacy invasion, I think it’s a fantastic idea,” said one consumer.
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Not so, said another. “It holds you up. It’s annoying.”
Consumers and businesses switched to the chip-based cards and readers 16 months ago to deter theft. But a study released this week from Javelin Strategy and Research found that identity fraud cases rose 16 percent in 2016, which equates to 15.4 million new victims – a record high. Lane Conner, founder and CEO of credit card processor Fuze said the chip rollout was bungled from the start, in part because it was supposed to require a pin – not just a signature.