New Credit Cards in 2015 to Provide Identity Theft Protection

February 7, 2014

The end of the swipe is coming.  With massive security breaches, like those at Target and Neiman Marcus, threatening the confidence of customers who shop at major retailers, American credit card companies are finally going to make the big change away from our traditional credit cards. We’ve all been used to the black strip on the back of a credit card that holds all of our personal information, but that makes it easy for hackers to nab the data and steal identities.  So, the push is on to switch to a harder-to-crack, chip technology that will also require a PIN number to use your card.

The Wall Street Journal reports, that beginning later next year, you will stop signing those credit card receipts. Instead, you will insert your card into a slot and enter a PIN number, just like people do in much of the rest of the world. The U.S. is the last major market to still use the old-fashioned signature system, and it’s a big reason why almost half the world’s credit card fraud happens in America, despite the country being home to about a quarter of all credit card transactions.

The recent large-scale theft of credit card data from retailers including Target and Neiman Marcus brought the issue more mainstream attention, leading to a Senate Judiciary Committee hearing this week. Executives told the senators that once the country transitions to the new system — which includes credit cards embedded with a microchip containing security data — these kind of hacking attacks will be much more difficult to pull off.

Click here to read more from the Wall Street Journal.