Serious security flaw possible with chip-based cards

This Wednesday, June 10, 2015 photo shows a chip-based credit card, in Philadelphia. U.S. banks, tired of spending billions a year to pay back fleeced consumers, are in the process of replacing tens of millions of old magnetic strip credit and debit cards with new cards that are equipped with computer chips that store account data more securely. (AP Photo/Matt Rourke)

SAN FRANCISCO (KRON) — There could be a serious security flaw with chip-based credit cards.

Researchers say card thieves can re-write the strip’s code to make it appear like a chipless card.

This allows thieves counterfeiting.

Experts say the flaw will lead to more complaints by retailers who arguey they were forced by banks to accept chip-based cards.

Retailers say the chip upgrade could cost them $25 billion.

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