No-swipe credit cards 'linked' with identity theft

The latest innovation in banking has the potential to make customers susceptible to identity theft, experts warn.

According to Charles Schumer, a US senator believes that credit cards equipped with RFID (Radio-frequency Identification) chips are not sufficiently and leave the consumer open to theft from criminals, without anything being physically stolen.

"All you need to be is within a couple of feet of the customer," said Senator Schumer.

"You may as well put your credit card information on a big sign on your back," he added.

So far, over ten million RFID-equipped credit cards have been issued, and manufacturers insist that encryption levels match those used on traditional magnetic strips.

However, the senator believes that thieves could steal data simply by arming themselves with mobile RFID readers.

RFID chips are currently used in a number of applications, including passports, transport payment systems and animal identification.

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