Police today warned that gangs have developed technology to
steal customer bank details from inside
Chip and PIN
machines.
Criminals are said to be hiding devices inside check-out card
readers to reveal PIN numbers matching credit cards, as well as
obtaining data to make cloned
magnetic
stripe cards.
Although these do not work in UK cash machines, criminals can
use them to withdraw money in countries that have yet to roll out
Chip and PIN. This type of fraud increased by 77% last year,
totalling £208m.
The police issued the warning after raiding an alleged
card fraud factory in Birmingham. After the raid, carried out
by the Dedicated Cheque and
Plastic Crime Unit, two people were arrested and charged with
conspiracy to defraud.
The unit, supported by £3m funding from the banking industry, is
made up of officers from the metropolitan and City of London police
forces as well as banking industry fraud investigators.
Detective Chief Inspector John Folan, head of the unit, said,
"To date, compromised Chip and PIN terminals have been found in
less than 30 retail outlets throughout the UK. Together with the
banking and retail industries, we are working to ensure this figure
is minimised."
Sandra Quinn, of the UK payments association
Apacs, said, "Chip and PIN
remains the safest method of payment for goods and services, and,
in the unlikely event a cardholder is an innocent victim of this or
any type of fraud, they enjoy
excellent protection under the banking code, which means that
they will not suffer any financial loss."
However, the banking industry was challenged last February over
the
security of Chip and PIN system.