Card fraud declines with chip & Pin cards |
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Published
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Mon, 10 Oct 2005 13:05
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LONDON: Identity theft and counterfeiting of debit and credit cards seem to be on the decline ever since chip and pin cards were issued by banks. The final blow to these shopping thieves will be struck on Valentine’s Day next year.
From 14 February 2006, if a shopper does not know her four-digit PIN number, the retailer will simply refuse to accept her signature on a receipt to verify payment. Customers who do not remember their four digit PIN number will be asked for a different method of payment or they may have to leave their purchases on the till.
A multimedia advertising campaign will urge consumers to find out what their Pin is how to remember it and to use it. The campaign will remind consumers of the deadline and include distribution of material to shop staff.
The Association of Payment Clearing Services (APACS) said it would further reduce the instances of fraud using credit and debit cards. Between January and June 2005, such fraud cases had declined by almost a third reducing the loss by such fraud from 126.6 million (first half 2004) to 89.9 million. These figures are not inclusive of fraud committed online or over the telephone or when cards are misplaced or lost in the post.
The chip and Pin card system uses a smart chip that has more storage capacity than magnetic strips. Unlike the less reliable method of signing a receipt, this system is more secure as it requires the user to verify transactions by keying in a Pin number. During the introductory period of this system, many retailers had accepted signatures if the customer did not know their Pin number. After the February deadline, very few will relent as most have agreed to cooperate with banks to see that the system is fully in place and followed by all.
According to latest figures, as many as 140 million new chip and pin cards are issued already; currently more than nine out of 10 people have such a card. The APACS officials estimate that there are a hundred chip and pin transactions every second.
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