Switching to EMV
The Bank of Israel is following suit with Europe and the US in credit cards. David Zaken, Supervisor of Banks has ordered the credit card companies and banks to switch customer credit cards in line with the EMV security standard within the next 3.5 years.
It is reported that the switch to smarter credit cards will involve a number of complex changes. These include the issue of credit cards, through to replacing or amending ATMs and terminals at businesses to accommodate the change in the clearing system. As a result, the move is likely to cost tens of millions of dollars in infrastructure change.
Nevertheless, the Bank of Israel states that the switch is intended to significantly reduce credit card fraud. It will also remove current restrictions prohibiting usage of Israeli credit cards in other countries that have switched to smart cards. With fraudulent activity falling in countries that have already made the switch to EMV, criminals have turned their efforts to countries still using magnetic strip-based credit cards.
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