New Credit Cards: Safe or Sorry?

By Darla Sitton and Andrea Garrett
CBN News

CBNNews.com - Millions of Americans are using a new kind of credit card. It can be swiped from a distance, which makes paying even easier.
But a new report claims that the cards may pose a risk for identity theft.
Advertisers promote it as the next generation of credit cards. Its data is instantly delivered by radio waves.
And it's designed to make shopping a breeze; easy swiping - no signing. But the problem is - identity thieves may think it's easy, too.
Some computer scientists from the University of Massachusetts decided to see just how safe the card is. They got the radio-wave card reader stores use and rounded up 20 of the new cards.
One beep, and they got a name, the credit card number, and its expiration date -- easily hacking into all 20 accounts.
U. Mass - Amherst scientist Kevin Fu said, "If you are holding your card and the thief comes behind you, for instance, and gets close enough, then your card will be read."
What's even worse, they were able to confiscate the data from a card that was nearby, without taking it out of a purse or wallet.
"A person could take this equipment and put it into a backpack, and go to a crowded area and basically start collecting credit card numbers," said Johns Hopkins Computer Science Professor Avi Rubin.

But credit card companies dispute the findings.

American Express officials claim its cards are protected by the "highest industry level of security," and Chase insists that "the readability range on its cards is less than 2 inches."
MasterCard says the study doesn't take into account "the full range of security features."
But computer experts say, "Buyer beware."