A new scheme called "shimming" is now preying on chip credit cards, which were rolled out a few years ago to reduce fraud.

Perpetrators who target chip credit card secretly insert a paper-thin device inside a chip card reader on a credit card terminal. Then, when the credit card is placed on that slot, the device (called "shim") captures the card information by reading the chip.

Chip credit cards are protected by a technology that prevents thefts from making a counterfeit chip card. However, its less secure magnetic stripes allow crooks to create a counterfeit card with a stripe only. The card could then be used for fraudulent transactions at businesses that have not upgraded its technology and still accept non-chip cards.

Although such scam is not widespread yet, it is something to alarm authorities and to serve as a reminder for credit card holders to monitor fraudulent purchases on their credit card statements.

Meanwhile, MasterCard is planning to introduce a variation of credit cards that uses fingerprint identification to produce secure point-of-sale transactions. The card holder's fingerprint, which will be stored on the card's EMV chip using a fingerprint reader embedded on the card, will be needed before a transaction could go through.

The chip validates the user's identity by matching the fingerprint to the stored pattern. The change process is simple for merchants, as those with a chip reader do not need to invest on a separate fingerprint reader.

Theoretically speaking, this biometric card improves security compared with chip-and-PIN, and fingerprint card is more secure than a chip card that needs only a signature.

The tech is currently in a trial phase in South Africa but MasterCard plans to expand testing within a few months across Asia and Europe. The company is also targeting a worldwide rollout by the end of this year.