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  1. Resource Center
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  3. NAFCU Podcast: Chip Cards and Fallback Attacks
NAFCU Podcast:

Chip Cards and Fallback Attacks

  1. Resource Center
  2. Podcasts
  3. NAFCU Podcast: Chip Cards and Fallback Attacks
By Allied Solutions, with NAFCU,
August 09, 2023
With the launch of the chip card came fallback attacks. Do you know the risks involved with fallback authorization? Allied Solutions Vice President Risk Consulting Ann Davidson will speak in-depth about the state of fallback attacks.

 

 

 

 

Ann Davidson, Vice President Risk Consulting

With more than 40 years of diverse experience in the financial industry, Ann Davidson has become a nationally renowned expert in risk control and risk management. Ann has an impressive list of achievements and accreditations in the financial industry, which includes making notable article contributions to accredited financial publications and being a keynote speaker on a variety of risk management topics at hundreds of conferences and seminars nationwide.

 

In this episode:

[01:03] Fallback refers to using the mag stripe on a card to authorize payment when a card chip (or POS device) isn’t working properly.

[03:50] In 2017, Visa and Mastercard in Canada disallowed fallback.

[07:23] Credit unions can limit the fallback dollar amount on POS devices to prevent fallback attacks.

[07:42] There is no reason to ever allow a mag stripe swipe at a chip-enabled ATM or ITM.  

[09:17] A lot of credit unions are blocking fallback at the POS without causing any inconvenience to their members.

[09:50] If you allow fallback on your POS system or ATM/ITM, you assume the full risk as the card issuer.

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