Feeds

Chip and PIN intro fuels ‘mini-boom’ in card crime

Return to fraudster

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

The mass replacement of credit and debit cards with the UK roll-out of Chip and PIN is fuelling a 'mini-boom' in card crime, The Guardian reports. Crooks are intercepting replacement cards in the post and using them to commit fraudulent transactions. Often, bank cards users are not expecting to receive new cards, so they won't realise anything is amiss until they receive their monthly statements.

Chip and PIN began in October 2003 and is designed to make credit and debit card purchases more secure. Consumers are asked to enter a four-digit PIN code instead of signing to verify card transactions. Newly-issued credit and debit cards will come with smart chips to recognise this PIN number when transactions are processed. Up to 130m new Chip and PIN cards will be sent out by the end of the year, at which point retailers who haven't introduced the new scheme become liable for fraudulent transactions.

As more cards are been sent out, a greater number are being intercepted by thieves. The industry lost £43.4m to "mail non-receipt fraud" in 2003 and this can only be expected to increase this year. Most cards are sent through Royal Mail's standard service, rather than couriers or Royal Mail's more secure premium service such as Registered Delivery. Last year more than 14m items of post were lost in transit.

In London alone, police are getting "three to four" people a day reporting such thefts, according to The Guardian. Victims were often unaware that their bank had sent them a new card because their previous card remains valid. In some instances crooks had managed to steal not just new Chip and PIN cards but the PIN number that goes with them, allowing crooks to empty accounts using cashpoints.

A spokeswoman for the Association for Payment Clearing Services said that consumers would not be liable for such losses. "For the banks it is a risk assessment exercise, but you have to remember that the majority of cards arrive without problem - when they do go missing in the post the customer is not liable for any subsequent losses," she said. ®

Related stories

Cardholders clueless on Chip and PIN
Chip and PIN gathers pace
UK terminally unready for Chip and PIN
UK credit card fraud down 8%
Chip and PIN hits 8 million cards
Chip and PIN goes national

New hybrid storage solutions

More from The Register

next story
Google recommends pronounceable passwords
Super Chrome goes into battle with Mr Mxyzptlk
Infosec geniuses hack a Canon PRINTER and install DOOM
Internet of Stuff securo-cockups strike yet again
'Speargun' program is fantasy, says cable operator
We just might notice if you cut our cables
Snowden, Dotcom, throw bombs into NZ election campaign
Claim of tapped undersea cable refuted by Kiwi PM as Kim claims extradition plot
Reddit wipes clean leaked celeb nudie pics, tells users to zip it
Now we've had all THAT TRAFFIC, we 'deplore' this theft
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
TorrentLocker unpicked: Crypto coding shocker defeats extortionists
Lousy XOR opens door into which victims can shove a foot
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.