Chip and pin has been widely discussed amongst IT experts and it’s fairly widely acknowledged that it seems that the purpose of C&P is not so much to prevent fraud, but to change the burden of liability for fraudulent transactions onto the consumer instead of the financial institutions. One person in particular that I’m aware of has documented several times the problems with the systems that financial institutions use to safeguard and authorise transactions.

Now it seems that the first major fraud has occurred in the UK involving chip and pin. The handheld pin entry devices are supposed to be secure, and it seems as though APACS is blaming the devices (or Shell?) from the news report.

One Response to “Chip and Pin: The first big fraud?”

  1. bronchitikat says:

    Apparently it’s cos of the changeover period. Chip & pin is (supposedly) secure still. But cards still have the mag strip on the back containing all the user details & it’s that bit which the new skimmers (mainly at Shell garages so far) are skimming.

    Because, despite 14th Feb being changeover day, there are still shops around – Claire’s Accessories, Laura Ashley, to name but two big chains, who still haven’t got the C&P equipment yet. Well, they hadn’t last month anyhow.

    Want to start a campaign against them? Or maybe do something to the mag strip on the back of yr card?