In the year 2015, a new credit card system was introduced, the EMV system. This system enables credit card users to use a chip. A lot of frauds took place in the last year, so the US decided to implement this new strategy of using the EMV system in an effort to deter fraud. “Credit card fraud is a growing problem in the U.S. About 31.8 million U.S. consumers had their credit card information stolen last year, more than three times the number of consumers affected in 2013, according to a report published by Javelin, a company that studies customer transactions. According to a report from Barclays earlier this year, almost half of the world’s credit card fraud occurs in the U.S” (Enjoli, F., & Susanna, K). This new system has its pros and cons. But, the real question is does this new system actually prevent fraud? Statistics show that thieves still find a way to hack into the system and steal customer’s personal information. Not every store has been upgraded to this new system, which results in thieves finding ways to steal valuable information. There are lots of issues involved with this new system, both ethical and societal. Nevertheless, negative and positive consequences are also a part of this system. What makes this topic current is because of the fact that the new EMV system is gaining popularity in today’s world. How does it actually work? “According to the Electronic Transactions Association, the high-tech chip creates a unique code for each transaction, making it difficult for criminals to duplicate consumers’ information. The new cards have to be inserted and then held in a card reader, which then uploads the information to complete the transaction. The new credit card standards are not a mandate for retailers and credit cards with just magnetic strips will still be accepted” (Enjoli, F., & Susanna, K). Almost all stores, merchandises, malls are using this new system. In fact, the US has been slow in implementing this new credit card system. The EMV system was introduced a while back. Now, the US has seen all the frauds that have been taking place so they decided to act fast and started using chip cards. But, this new chip card system makes a difference in our lives. How? For one, statistics show that people are gaining an understanding of how secure this new chip card system is. But, the problem is that these chips will not secure online transactions. Section 2: Beneficial Aspects A beneficial aspect means something good that comes out of using this new system. There are 2 beneficial aspects that come along with chip cards. One beneficial aspect is that EMV chip provide significant security and they deter the potentials for fraud. EMV chips have the potential to prevent fraud. They do this by communicating with EMV card readers by forming a single code for every transaction they make. The special code that this EMV generates is basically useless. This saves businesses a lot of stress and not only that it also helps to save businesses from dealing with chargebacks. The second beneficial aspect is that the the new fraud liability shift in October 2015 will demand people to comply with the EMV rules and regulations. This new liability shift says that if a hacker skims credit card information from a business or firm that has not yet adhered to using the EMV chip system, then they are held liable for any fraud that occurs. By having this consequence, businesses will easily adhere to the EMV guidelines. (EMV chips: The good and the bad)Social/Ethical issues There are also issues tied with using this new system. One ethical issue is the ethics of stealing. Virtue ethics means following God’s will and this excludes the act of stealing. Virtue ethics are ethics which ask questions like, “how should I live?”, “what is the good life?”, and/or what are proper social values?”. The act of stealing is a major crime and considered against good virtues and ethics. Also, it goes against the ACM code of ethics. ACM stands for Association for Computing machinery. The ACM code of ethics is a preamble which lists the major imperatives that professionals must have regard for. These are personal responsibilities that these computer professionals takes. Some of those imperatives include: “contribute to society and human well being, avoid harm to others, be honest and trustworthy, and most importantly respecting the privacy of others. The respect for privacy clause states: “Computing and communication technology enables the collection and exchange of personal information on a scale unprecedented in the history of civilization. Thus there is increased potential for violating the privacy of individuals and groups. It is the responsibility of professionals to maintain the privacy and integrity of data describing individuals. This includes taking precautions to ensure the accuracy of data, as well as protecting it from unauthorized access or accidental disclosure to inappropriate individuals. Furthermore, procedures must be established to allow individuals to review their records and correct inaccuracies. This imperative implies that only the necessary amount of personal information be collected in a system, that retention and disposal periods for that information be clearly defined and enforced, and that personal information gathered for a specific purpose not be used for other purposes without consent of the individual(s). These principles apply to electronic communications, including electronic mail, and prohibit procedures that capture or monitor electronic user data, including messages,without the permission of users or bona fide authorization related to system operation and maintenance. User data observed during the normal duties of system operation and maintenance must be treated with strictest confidentiality, except in cases where it is evidence for the violation of law, organizational regulations, or this Code. In these cases, the nature or contents of that information must be disclosed only to proper authorities” (ACM code of ethics and professional conduct). A second social issue of using this new system is that it will not work for online transactions. Now that is not fair. Majority of Americans are online shoppers, but the EMV system will not work for online purchases. Everyone loves to shop online, especially women. The reasons people shop online is because of convenience and price. Why will the new EMV system not work for online transactions? “EMV chips will prevent a thief from making a copy of your credit card but it won’t stop them from stealing your online payment credentials. EMV technology won’t protect consumers with online purchases, as it only protects consumers when they dip their card in an EMV-ready terminal in a face-to-face transaction, McQuay notes. NerdWallet found that online fraud in the U.K. has risen 120 percent over the last 10 years. In addition, “Consumers still need to ensure that they’re shopping on reputable sites, even if their card has an EMV chip on it,” McQuay said” (Enjoli, F., & Susanna, K). A last social issue with the new chip card system is the amount of time you have to wait in line. Waiting in line can be hectic and now with this new system, you have to wait a few more seconds. Customers already get annoyed by waiting and now this new chip card system will make them wait even more. Since the new card is designed to generate a unique code for every transaction, it takes longer than usual. “Some people are experiencing a 20 second wait times with these chips,” said Avivah Litan, vice president and analyst at Gartner Research. “We’re a more rushed society than anyone else. So me, I’m going to be a little mad when I have to wait longer at checkout. You have to wait until the very end to get your card. Litan says retailers who have met the deadline will likely add cashiers to compensate for possible delays, and some may even create cash-only lines. But because many merchants and banks didn’t upgrade by the deadline, there will be a mix of swiping and dipping. It may take additional time for customers to figure out whether they have to swipe the old way or insert the new way, depending on the machine and depending on their card, which could cause further delays” (Wong, K). Consequences:One negative unintended consequence is that the card will not work overseas. This card will not work overseas. But, many Americans take vacation days and travel out of country. They need to take their cards with them. Why will these new cards not work overseas? “In other countries, chip cards come with PINs, which require the user to remember a four-digit number in order to use the card. Most U.S. chip cards won’t come with PIN technology initially, meaning shoppers will still confirm purchases with a signature. The problem is, some chip credit card machines in other countries aren’t equipped to accept signatures, so you might not be able to pay if you’re traveling and don’t have a card with a PIN” (Wong, K).Another negative unintended consequence is that sometimes we forget our card! Americans are busy with their daily routines and struggles and sometimes one can forget their card in the reader. It becomes extremely difficult and just makes thing worse if we forget to grab our cards at the end of shopping! Last negative unintended consequence is that we can’t use the card for online shopping. These chip cards are not made to be used for online transactions. The cards are made to be just read by EMV ready terminals. No other system can pick up the card unless it is an EMV terminal. So, unfortunately this new chip card system is unable to be utilized for online shopping. Section 3: Detrimental Aspects One detrimental aspect is something that poses as harmful to using EMV system. There are also 2 detrimental aspects of using this system. One detrimental aspect of this new system is that it is extremely expensive. The reason for high costs is because replacing all credit cards and credit card readers can be expensive. “Replacing all of a company’s credit card terminals and card readers with EMV-equipped terminals can be costly and could delay migration to EMV compliant terminals” (EMV chips: The good and the bad). A second detrimental aspect is that, “EMV chips won’t do anything to deter card-not-present fraud, and may actually increase it. Since the EMV chip is a physical characteristic of a card, one that communicates with those special EMV chip readers, online or MOTO businesses won’t benefit from the enhancement. And, as data skimmers and hackers begin to have a more difficult time in the card-present world, they may very well shift their attention to defrauding online credit card businesses that, simply because of the times, are growing ever more popular. Businesses that do some card-present and some card-not-present transactions every month may not be so quick to make the switch since they may feel they won’t be so adequately protected when all’s said and done”. (EMV chips: The good and the bad). In conclusion, this new technology of chip card has its good and its bad. There are societal and ethical issues that come with it. There are also unintended and intended consequences that come with it. Nevertheless, this new system drives everyone crazy. But, in the end the real question is, does upgrading cards benefit society? Kant believes that you benefit society by a higher degree of security, and the theory of utilitarianism balances the cost of issuing new cards vs the cost of fraudulent charges. Also, the theory of social contract believes and holds that fraud and stealing is against the law in every country. No, it does not benefit society at all as a whole. There are a lot of drawbacks and difficulties because of this new system. The negatives outweigh the positives, in this case. However, the real benefit is that in the end we all are safe from fraud. The new EMV system is safe and secure. It is understandable why the US would implement this new system, because they want to be safe from fraud and fraudulent activities. As mentioned earlier, the US saw 31.8 million consumers had their credit card information stolen last year. Every new system has its pros and cons; no system is perfect and will always have positives and negatives. It will take Americans time to get used to this new system. My take on this new system is that yes it does have pros and cons. I am more for the pros of the EMV system. I understand there are a lot of online shoppers out there, but we should look at how this system is benefitting us a whole. As a whole, we are safe and secure from fraudulent activities. Nevertheless, there should be firm investigation that should be taken when it comes to online purchases. The online purchases are the easiest way for thieves to steal the card information because there are no chips involved. And there are only two things a criminal need the card number and the 3-digit security code. The merchants should work together and investigate each transaction and not worry about losing customers due to delayed process because the last thing we need is the fraudulent activities to rise agai
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