LITTLETON, Colo. - The President and CEO of a local credit card manufacturing company is warning of the danger of fraudsters this holiday shopping season, as well as promising a reduction in fraud with the use of new credit card chips.
CPI Card Group is a company with a factory in Littleton. The company's CEO, Steve Montross, says the Littleton facility produces a large portion of chip cards that are in use today.
"Fraudsters have really concentrated on the U.S. and they've concentrated on how to make counterfeit cards from those magnetic striped cards," Montross said.
Montross said the chips are more secure because they encrypt the information on the card, making it difficult for scammers to obtain the data. It also makes card skimmers useless.
"It could take a little bit longer to get through the line than a regular magnetic strip card. But I think it's worth it, because it is definitely a more secure form of payment," Montross said.
Montros said European countries have been using chip cards since the 90s and scammers are targeting U.S. citizens because they haven't used encrypted cards yet.
"The amount of fraud costs in the U.S. has just sky rocketed," Montross said. "The fraudsters have looked at the US and view us as the weak link in the payment chain."
Montross said the Littleton factory can create 23 million cards a month.