Chip and Pin could cause problems for consumers
When chip and pin technology for debit and credit cards came into force over recent years is was hailed as safe, effective, speedy, and convenient by banks – and in most cases consumers were happy to use this technology in order to conduct card transactions.
 However, over a period of time a number of problems has come to light in relation to chip and pin, one of the most worrying of which is the risk of fraud. In the latest problem that has been highlighted gangs of fraudsters and thieves are forming different ways to get the better of chip and pin technology and steal millions of pounds.
In one seemingly complex but amazingly simple method fraudsters used MP3 players to bug cash machines and record transactions details. Once this was done, they cloned dozens of credit cards and used the details that had been recorded along with the cloned cards to get away with nearly a quarter of a million pounds worth of cash and goods. Banks and councils are now getting increasingly concerned about the sophisticated and effective methods being used to defraud consumers through chip and pin technology.
One idea put forward by local authorities and banks in the UK in order to try and protect consumer information is to add exclusion zones around cash machines, where consumers would be discouraged to make a transaction if someone is standing outside of the exclusion zone to get close to the machine – this is in a bid to cut down on criminals being able to spy on transactions being made.
A number of experts have stated that there is a twenty percent chance that a cloned card will not be noticed by a retailer, thus exposing consumers to high levels of fraud once a user’s chip and pin number has fallen into the wrong hands. Issuing banks are partly being blamed for this, with many stating that they are using the cheapest option available when it comes to choosing cards for their customers.
Tom Smith
1st February 2007
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