Banks concerned over chip and pin fraud potential

Banks across the UK have expressed concern following a recent experiment carried out by researchers at Cambridge University, showing just how easy it could be for fraudsters and conmen to steal the chip and pin data from machines. Shoppers have recently been warned about the major security scare, and with millions of people hitting the January sales armed with their chip and pin credit and debt cards, this could spark major worry amongst consumers as well as amongst banks.

Cambridge University researchers have stated that the system that they have looked into a practically a foolproof way for fraudsters to obtain people’s chip and pin information, and this is through a reprogrammed chip and pin machine, which they claim could easily be placed in shops and stores in place of the regular one. Researchers have also posted a video online to warn consumers of the possibility of this type of fraud taking place.

UK banks now have teams of scientists working on the issue, and have admitted that the possibility of this type of fraud taking place is very worrying. Chip and pin fraud resulted in Shell suspending chip and pin payments in hundreds of its petrol stations last year after fraudsters got away with over a million pounds from the accounts of customers.

One APACS officials stated: 'People could, in theory, use this to steal account details from cards. Our experts are in discussion with the manufacturers of terminals to see what can be done. Essentially what these people have done is replace the innards of a chip and Pin machine. 'However, we would say that this has only been seen in a laboratory so far. People would not be able to create counterfeit chip and Pin cards, but they could use this information abroad to make purchases.'