Can Chip Credit Cards Be Hacked?—Security Analysis and Tips To Stay Protected
Globally, 94.76% of card-present transactions now use EMV (Europay, Mastercard, Visa) chip technology[1], a more secure alternative to the magnetic stripe. However, as chip cards have increased the security of card transactions, criminals have evolved their tactics, too, looking for loopholes in how the technology is used and exploiting both technical gaps and human error.
To better protect your finances and personal data, you need to understand how these threats work. In this article, we’ll explore common questions like:
- What makes chip cards safer than magnetic stripe cards?
- Can chip credit cards be hacked?
- What types of fraud are still possible with EMV cards?
- How can you minimize the risk when using a chip card?
What Is Chip Technology on a Credit Card?
Chip or “smart” credit cards contain a small metallic EMV chip in addition to the traditional magnetic stripe. This chip is embedded with microprocessors that generate a unique transaction code each time you insert your card into a reader.
Chip-enabled cards typically offer two different verification methods depending on your card issuer and the merchant's setup:
- Chip-and-PIN—You insert your card and enter a four-digit PIN to complete the transaction.
- Chip-and-signature—You insert your card and sign a receipt or digital pad to verify your identity.
Both methods provide an extra security layer for your transactions, though chip-and-PIN is generally considered more secure since PINs are harder to steal than signatures.
EMV Chip Technology vs. Magnetic Stripe Security
While stripe cards store and transfer static cardholder data, such as the card number and expiration dates, EMV chip cards generate a unique, encrypted code for each transaction that can’t be reused. This makes it significantly harder for criminals to clone your chip cards.
Even if a criminal skims your EMV card, they can only obtain the data from the card’s magnetic stripe, and they can’t use it at a merchant with a chip reader. Here’s more information about the key differences between the two card technologies:
The security advantages of chip technology have driven industry-wide adoption. In fact, Mastercard has announced that credit and debit cards powered by magnetic stripes will be completely phased out by 2033[3].
Can Credit Cards With Chips Be Hacked?
Despite the enhanced security features and advanced encryption protocols, credit cards with chips can still be hacked.
While EMV technology significantly reduces traditional cloning risks, fraudsters have developed new methods to either exploit or bypass chip security through:
- Shimming attacks
- Merchant compromise and infrastructure attacks
- Near-field communication (NFC) interception
- Bank chip scams
Shimming Attacks
Where traditional skimming targets magnetic stripe cards, shimming is a sophisticated form of credit card fraud that specifically targets EMV chip cards.
Criminals can insert ultra-thin devices called "shims" inside card readers at ATMs, gas pumps, or retail payment terminals. These devices contain microprocessors and flash memory that capture information when you insert your chip card to make a payment.
While this stolen data can't be used to create a duplicate chip card (since each chip transaction generates a one-time code), fraudsters can use it to manufacture counterfeit magnetic stripe cards. These cloned cards can then be used at merchants that haven't upgraded to chip-enabled terminals.
The danger of shimming lies in its stealth—these devices are nearly impossible to detect with the naked eye. You might not even realize your chip credit card is hacked until unauthorized charges appear on your statements.
Merchant Compromise and Infrastructure Attacks
Criminals can target the payment infrastructure rather than individual cards, compromising ATMs, point-of-sale terminals, and merchant networks to intercept chip card data as transactions occur. These sophisticated attacks can affect thousands of customers simultaneously.
Infrastructure attacks that may lead to chip credit cards being hacked include:
- ATM and POS terminal compromise where criminals install malware that captures chip card data during legitimate transactions[4]
- Payment processor infiltration through ransomware attacks that can disrupt entire national payment systems and steal sensitive financial data[5]
- Network lateral movement, where attackers use keylogging malware to harvest credentials and move through corporate networks to reach payment processing systems[4]
Near-Field Communication (NFC) Interception
NFC interception targets contactless "tap-to-pay" chip cards by capturing radio frequency signals during transactions. When you tap your card or phone to pay, it transmits payment information wirelessly to the terminal. While generally secure, this communication can potentially be intercepted by specialized equipment.
These attacks typically require criminals to be within 5–6 inches of your card during the brief moment of data transmission. Advanced attackers may use modified NFC readers with extended range capabilities to capture card data from greater distances, especially in crowded locations like public transportation or busy shopping areas.
The most sophisticated form involves relay attacks, where criminals use two devices to extend the communication range. One device captures signals from your card while another relays this information to a distant payment terminal, allowing unauthorized transactions without your knowledge.
Bank Chip Scams
A new type of impersonation scam is gaining prominence among criminals. In a recent announcement, the FBI explained that scammers call victims using spoofed phone numbers, impersonating bank officials[6].
During these calls, fraudsters claim to have detected fraudulent transactions on the victim's account. They then instruct customers to cut up their cards but leave the chip intact. The scammer then arranges for an accomplice to visit the victim's home to collect the card with the chip still attached.
Criminals might also use social engineering techniques to obtain your card PIN during pickup. The accomplice may even "assist" by cutting the card themselves, ensuring the chip remains undamaged before leaving with the card remnants. With both the intact chip and PIN, criminals can steal funds directly from your bank account.
What About Online Transactions?
Since the physical EMV chip can’t be read during online transactions, it’s impossible to leverage the chip's dynamic authentication features that generate unique codes for each purchase.
When you shop online, you’re still manually entering your card details, CVV codes, and PINs on websites, and all that static information is exposed to the merchant the moment you make the payment. Common threats targeting online chip card users include:
- Phishing schemes where fraudsters impersonate banks or retailers to steal card information through fake emails, texts, or phone calls
- Fake websites and e-commerce stores designed to capture payment details during checkout
- Data breaches at online merchants that expose stored card information
- Man-in-the-middle attacks on unsecured Wi-Fi networks during online purchases
Tips To Protect Your Chip Credit Card From Hackers
You can follow these basic guidelines and protective strategies to minimize your exposure to chip credit card fraud:
- Inspect card readers before use—Look for signs of tampering, such as loose or misaligned parts, unfamiliar attachments, or difficulty inserting your card at ATMs and payment terminals.
- Shield your PIN entry—Always cover the keypad with your hand when entering your PIN to avoid shoulder surfing or hidden cameras.
- Set up real-time transaction alerts—Enable push notifications from your bank or card issuer to spot unauthorized transactions quickly.
While these security measures can help reduce your risk, chip cards remain vulnerable to online threats and the magnetic stripe fallback at some merchants. That’s where virtual cards come into the picture.
Virtual cards add an extra layer of protection between your funds and hackers by hiding your actual card details and generating unique, disposable card numbers for use instead. Even if your virtual card details are stolen, fraudsters can’t access your actual payment card information.
If you want to start using virtual cards for regular payments, Privacy provides a seamless and secure solution. With Privacy, you get access to versatile card types, advanced customization options, and robust security features designed to help you protect your payment information every time you shop.
Protect Online Transactions With Privacy Virtual Cards
Privacy is a BBB®-accredited company trusted by over 250,000 customers. By linking your debit card or bank account with your Privacy account, you can generate virtual cards with unique 16-digit numbers, expiration dates, and CVVs to use on most websites that accept U.S. Visa® and Mastercard® payments.
Privacy employs the same rigorous PCI-DSS security standards as major banks and financial institutions, including:
- Military-grade data encryption—Privacy ensures that all web traffic is protected by Transport Layer Security and inter-data center communication is secured through Internet Protocol Security with AES-256 encryption.
- Two-factor authentication (2FA)—Privacy supports 2FA via email-based codes, one-time SMS codes, and authenticator apps to add a second verification layer for your account.
- Transaction alerts—You receive instant notifications whenever your Privacy Cards are used or declined, helping you detect any unusual activity promptly.
- Secure server infrastructure—Your sensitive information is stored in single-tenant services in private networks across multiple geographic locations.
- Third-party audits—Privacy conducts frequent third-party audits to comply with the highest security standards.
Privacy Card Types and Controls
Privacy offers four types of virtual cards, each with different features and protections against potential misuse:
You can set spending limits on all your cards, and Privacy will block all transactions above your preset limit. This feature protects you against large unauthorized transactions, billing errors, and hidden fees.
Privacy also lets you instantly pause or close your virtual cards without affecting the underlying funding source. This limits the risk of fraudulent charges in case of merchant breaches, since Privacy also declines all future transactions on a paused or closed card.
More Convenience at Your Disposal
To make your virtual card management and online shopping experience seamless, Privacy offers additional convenience features such as:
- Privacy Browser Extension—Available for Firefox, Edge, Chrome, Safari, and Safari for iOS, the extension autofills card information at checkout for quicker and more secure transactions.
- Privacy App—Available for iOS and Android, the mobile app lets you create, manage, and track virtual cards on the go.
- 1Password integration—This integration allows you to create and manage your Privacy Virtual Cards and login credentials directly from the 1Password browser extension.
- Shared Cards—You can share your virtual cards with trusted family members and friends, enabling you to share your budget without revealing your actual card details.
- Card Notes—This feature lets you add custom notes to each card, making it easy to remember where and how you use it. For instance, you can add merchant names or renewal dates to keep track of all your transactions.
How To Get Started With Privacy
If you’re a U.S. resident aged 18 or older with a checking account at a U.S. bank or credit union, you can get your virtual card in four simple steps:
- Visit the Privacy signup page and create your account
- Enter the mandatory Know-Your-Customer (KYC) verification details
- Connect a funding source (your debit card or bank account)
- Request and generate your first virtual card
Privacy’s Personal plan is free for domestic transactions and allows you to generate up to 12 new virtual cards per month. It gives you access to Single-Use & Merchant-Locked Cards, all the card controls, the Privacy Browser Extension, and the Privacy App.
If you require more cards or extra features, you can choose from one of the following monthly plans:
References
[1] EMVCo. https://www.emvco.com/about-us/worldwide-emv-deployment-statistics/, sourced June 4, 2025
[2] U.S. Payments Forum. https://www.uspaymentsforum.org/wp-content/uploads/2017/07/EMV-Fraud-Liability-Shift-WP-FINAL-July-2017.pdf, sourced June 4, 2025
[3] Mastercard. https://www.mastercard.com/news/perspectives/2021/magnetic-stripe/, sourced June 4, 2025
[4] Visa. https://usa.visa.com/dam/VCOM/global/support-legal/documents/visa-security-alert-new-malware-samples-identified-pos-compromise.pdf, sourced June 4, 2025
[5] World Bank. https://fastpayments.worldbank.org/sites/default/files/2025-02/Cybersecurity%20Focus%20Note_Feb%2019_Final.pdf, sourced June 4, 2025
[6] Internet Crime Complaint Center. https://www.ic3.gov/PSA/2024/PSA240802, sourced June 4, 2025
