19 August, 2008

Fraudsters have invented a new chip-and-pin device that leads them to corrupt chip-and-pin machines.

The new cheating trick was exposed yesterday as police raided a forgery card factory in Birmingham and discovered that the technology is being used to pinch the consumer's details and making of bogus cards.

Police are advising consumers that the devices are hidden inside so they should checkout card machines carefully, as petrol stations are most likely to be under attack.

According to police, around 30 terminals in the UK have been exaggerated by the new device.

Thieves can steal the card readers and mounted a hidden device which logs information when a customer enters their pin number.

The reader is then put back in a shop, supermarket or petrol station, sometimes with the conspiracy of an employee. The information is then used to make forgery cards to extract cash in countries where chip-and-pin has not yet been commenced.

Chip-and-pin was launched in the UK in February 2006 and has been regarded as a success in the reduction of card fraud.

According to the UK Payments Association, Apacs, in the last 3 years, as a result of chip-and-pin losses on face-to-face transactions on High Street transactions fell from £218.8 million in 2004 to £73 million.

The organization revealed that chip-and-pin remains the secured method of payment for buying goods and services, however, it was never claimed to be perfect.

Card fraud overseas has increased by 77% last year to £208 million. Chip-and-pin cards are to be launched throughout Europe by 2010.A

More Latest News
Get Online Unsecured Loans