22 March 2005
A new investigative study into the chip and pin payment system has uncovered a series of new flaws that are leaving consumers open to exploitation from financial institutions and under increased risk of attacks from fraudsters.
The research paper titled 'Chip and Spin' was conducted by Cambridge University's Computer department and claims that the new system is riddled with faults.
Even more damming is one particular part of the paper which articulates the idea that banks' primary motive for introducing the technology could have been to shift the liability for card fraud onto retailers and consumers.
Cambridge professor Ross Anderson explained: "If a cheque, or signed paper, is forged, the signature is often nothing like the customer's.
"But using a Pin takes us into more difficult territory. If a card forger observed a Pin as it was used, or a bank insider stole it from a computer system, then there is obvious way to find out."
The research added that chip and pin seems likely to lead to an increase in the number of Pins stolen due to the position of the terminals in shops and that whilst fraud will be reduced in the short-term, it will return worse in the longer-term as criminals find ways around the system.
Which is the right credit card for you? Find out now by comparing cards at uSwitch.com.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.