The industry just needs a kick in the pants to move to one time generated cc numbers. There are companies making such cards that are physically compatible with existing card readers. I had read about it, but cannot find the company name, I believe they had some sort of patent but were struggling.
The company said they had a credit card which provided one time numbers when swiped so was immune to skimming. I think the industry should move to such smart cards and there are different methods to secure transactions online.
I will also comment that they don't have the kick in the pants because they mostly shift the risk. If a merchant accepts a stolen credit card, they simply reverse the charge and the merchant is left holding the bag. They just ship out a new card and reverse charges. They do not have a financial incentive to fix this problem because it doesn't affect them much. If it does they will probably just collude with each and raise rates across the board. It may take outside incentive (regulations) to make them fix it.
The company said they had a credit card which provided one time numbers when swiped so was immune to skimming. I think the industry should move to such smart cards and there are different methods to secure transactions online.