US needs to upgrade to `smart card` technology to curb frauds

Washington: Security experts have pointed out that the United States need to incorporate smart card technology, which offers a much higher level of encryption and security than the magnetic strip cards used in America. Experts said that the U.S. lags far behind many other countries in adopting readily available technology that can provide stronger protection for consumers, CBS News reports.

Smart cards, also known as EMV or "chip and PIN" cards, have been the standard in Europe for at least a decade now, and the countries where smart cards are widely used have seen a dramatic decrease in fraud. The UK Cards Association reports that credit and debit card fraud dropped 36 percent between 2008 and 2012. Smart cards have a tiny microchip embedded in the card that generates a unique code every time the card is used, the report added.