Are the new chip cards really more secure?

Posted at 4:44 PM, May 10, 2016
and last updated 2016-05-10 17:53:07-04

It's a new way to pay, insert rather than swipe. This constant push and pull began to take its toll on Gina Cavaretta's card.

She started noticing the chip was starting to raise off the card. Finally one day she pulled it out and it really lifted off the card. Then she super glued the chip into place.

She spent an entire month shopping and paying for purchases with a super glued chip card until the chip came off at Walmart and fell on the ground.

Chase admits this happens but says it's rare, impacting only 10 of its 60 million customers a month.

If a card that's advertised as more secure is falling apart after just a few months, Cavaretta worries what else could happen.

Chase says there is no security risk. Why? The chip has the same account information as your magnetic stripe. But chips validate each purchase with a single-use code, a code created only when the chip and card are attached.

Banks maintain these cards are harder to duplicate because of that one time code created when you insert it.