Comment Re:someone explain for the ignorant (Score 1) 449
They are harder to replicate, but there's more. The card holds a secret key, which it will never divulge, and has the capability of producing a cryptographic signature using that key. As such, a transaction gets signed by the card on your behalf, with enough information included in the signed field that duplicates become obvious, preventing replays, and that alterations become computationally untenable. As such, capturing the information, regardless of whether it is captured in transit or in situ, doesn't give you the ability to commit fraud with the stolen data.
Of course, as long as the magstripes continue to exist and be honoured, you can always go around the system. This will be the case for a few years at least while the transition is made. If data from a chip terminal is successfully intercepted, it will sometimes possible to recover enough to regenerate track 2 from a magnetic card (the only track that is required, and the one that is read by card reader dongles like Square) plus the PIN. That's enough to create and use a functioning magstripe ATM card.