Chip and PIN no 'panacea'

Chip and PIN has forced fraudsters away from the high street, Shopsafe.co.uk director Simon Crisp was quoted as saying recently. While that may be true, what it has done is resulted in higher levels of card-not-present fraud and cross-border card fraud.

Crisp is quoted as saying stopping card fraud is about staying "one step ahead" of the fraudsters and that Chip and PIN is helping deter criminals. Well most so-called fraud experts would argue that Chip and PIN is not the 'panacea' some thought it would be and that it has merely forced fraudsters to become more sophisticated in their efforts to use cards for criminal purposes.

While it may have helped reduce the amount of card present fraud committed on the high street, online shopping presents numerous opportunities for fraudsters as the card is not presented. Malicious software and phishing attacks can also be used to capture personal banking as well as PIN and password details. I don't think Chip and PIN can really be classed as staying one step ahead of the fraudsters, as they have already jumped that 'hurdle'.