[praxulus]

I wasn't commenting on the security, just on the "blurts the magstripe information" comment. Apologies if you meant that metaphorically.

As for the rest of your comment, I don't think you're doing any risk modeling.

I have $0 fraud liability on all my cards. When fraud occurs, it takes a couple minutes to dispute a transaction. Even when it was a debit card, my credit union immediately gave me a provisional credit for the disputed amount while they investigated. The total cost to me for fraud is no more than a few minutes of my time. I have little reason to care about security.

Banks care about profit. What makes you think they haven't considered tighter security measures, and found that the cost of implementing them (including the inconvenience to consumers and resulting lost revenue) outweigh the savings from reduced fraud?