CHIP & PIN Fraud Alert

[JimmyTheOne]

Remember MP3's being used to capture consumers card details and PINs at stand alone ATMs?

 

Here's the latest wheeze - Chip & PIN Fraud Alert.

 

You're supposed to keep your PIN secret - difficlut when someone like this takes advantage of OAPs.

 

I wonder if the OAP victims will be accused of being negligent with their PIN?

 

Or I wonder if card issuers will have the decency to offer them Chip & Signature Cards? They may even tell consumers that Chip & Signature Credit Cards are an option for anyone?

[JimmyTheOne]

Complaints to the Ombudsman relating to credit card fraud have risen by about 20% since last April. This follows an increase of 40% in the previous financial year.

The concern now is that banks and credit card providers are using the pin-encryption on cards to shift the blame for fraud onto the customer. If a PIN has been used to extract funds, banks might assume that the customer has acted negligently and is therefore liable for any losses.

 

Story Here.

 

FT (Gist)

[demon_x_slash]

I know two people who have had their PINs compromised and money taken; 'twas a few months ago. The line from the banks concerned was basically: "You must have left your PIN lying around, you naughty customer you. Oh dear, we can't even trust you with a four digit number. Be more careful next time. By the way, no refund." Makes your blood boil; we knew that this was just a loophole to be exploited to the banks' advantages when the system was first being talked about. Sometimes it's nice to be proved right; in this case, I would much rather have been wrong.

[buzby]

OAPs are well advised, indeed everyone else to restore the balance of security had get a Chip and Signature card with all speed.

[demon_x_slash]

I keep meaning to, it's on my never-ending list of Things To Do. I've only got the one, and don't like it.

[buzby]

Do be aware of the Gotcha - if you use your card for ATM witrhdrawals, the removal of the PIN from the chip, ALSO results in the removal of the PIN from the Mag stripe, so it'll be supermarkets for cash witrhdrawals. Who would have thought their 'sig' solution would have been so half-baked!

[JimmyTheOne]

AIM: To minimise the RISK of becoming a plastic card fraud statistic. Where, if you are a victim, you're not beleived that you haven't been careful with your PIN.

 

A suggested remedy:

 

Any card that has a VISA/MasterCArd/Eropay etc logo - can be used with a PIN in a shop - Bin the PIN and replace these cards with Chip & Signature Cards. All Credit Cards - is a must - no PIN.

 

Solution: Keep one card with a PIN - preferably a banks own savings account card. Keep small amounts of cash in this account and transfer money into it if and when needed: (These types of cards can't be used in shops).

 

OR use only one PIN with your Debit Card. Lloyds TSB for instance provides customers with a Debit card that has a PIN factily for ATM withdrawals but cardholders continue to sign in shops.

 

Why change all your cards to operate with the same PIN when you don't need have PINs for these cards in the first instance?