UK Chip n Pin Has Reduced Fraud
|
|
|
|
Monday, 18 August 2008 |
|
Apacs, the UK Payments Association, said that over the past three years
losses on face-to-face transactions on the UK High Street fell from
£218.8m in 2004 to £73m last year owing to the introduction of
chip-and-pin.
But fraud overseas increased by 77% last year to £208m, 39% of total UK card fraud. Banks throughout Europe have agreed to bring in chip-and-pin cards by 2010. Police want to hear from any retailer who has had chip-and-pin readers stolen or believe their machines have been tampered with.
"Customers should be assured that UK retailers always take the protection of cardholder data seriously and are continuing to invest millions of pounds to enhance existing security measures," said Jane Milne of the British Retail Consortium.
Apacs says that chip-and-pin remains the safest method of payment for goods and services but was never claimed to be foolproof. The Banking Code should ensure that any victims are refunded for any losses. Banks usually refund money stolen from a victim's account by fraudsters, but there is a question of liability if customers have given away their pin number.
Security expert, Andrew Goodwill, from the Third Man group, said this was the first evidence of a breach of the chip-and-pin system, with the encryption of the chip having been broken. An Apacs spokesman said that inquiries were ongoing to establish how the hidden devices logged pin numbers.
PetrolWorld 140808
|
