magnetic stripe was created identity theft wasn't an issue, and so the data was never properly encorrupted. once criminals figured it out, obviously it has become a huge issue. >> reporter: now this is the latest weapon in the fight against credit card triem. >> this right here is the recently issued standard chip and signature card. it is supposed to eliminate the cloning of your credit cards. >> reporter: because the chip holds your data encrypted. you may have recently received one in the mail from your bank. it's the panacea. it's going to solve the whole problem. no, it's not. >> skimming is still alive and well, and it will continue to be alive and well as long as that magnetic stripe is still in the back of our cards. >> i'll have that cheesy tomatoey one and water. >> reporter: still there because it's taking a long time and a lot of money --? you don't do chip? >> no. it's just a swipe. >> just a swipe. >> reporter: to make the switch. so most cards now have a chip with all my details on it. >> it's not actually encrypted because they can easily have what's called a wedge-type dev