SmartMetric, Inc. (SMME: OTCQB) | SmartMetric Warns That the New EMV Chip Card Rollout Will See a Dramatic Increase in Online Fraud in the United States — the Case for a New Identity Paradigm and the Need for Biometric Security


NEW YORK, NY–(Marketwired – May 5, 2015) – SmartMetric, Inc. (OTCQB: SMME) — Based on experience following the adoption EMV Chip & PIN payment cards in Europe, the United States needs to brace itself for a massive uptick in online fraud or what is called in the industry, CNP (Card Not Present) fraud.

Given the heightened security of chip cards in retail sales and ATM transactions the European experience showed that the criminal focus shifted to the less secure and next weakest point. That being online transactions. In fact the United Kingdom saw almost immediately following the introduction of chip cards more than a 50% increase in online CNP fraud rates.

The decision by the payments industry to not require a user’s PIN in United States transactions, but rather rely on what is called chip and signature, will be less secure than the chip and pin system used in other parts of the world. So it can be expected that the chip card rollout in the United States will see less of a move towards CNP fraud as criminals will still be able to defeat less secure chip and signature at retail stores. This will still result in an increase in online fraud based on chip card adoption throughout the world.

SmartMetric has developed a biometric fingerprint activated payments card that uses a person’s fingerprint to validate instantly a person’s identity and after validation by the card’s inbuilt biometric reader, the card’s EMV chip is activated.

“The company is also tackling the highly insecure online payments world with a CVV number that appears on a thin film screen only following a user’s fingerprint match. This will help keep secure and secret the card user’s CVV number that has become the default security protection for online credit and debit card use,” said SmartMetric President & CEO, Chaya Hendrick.

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