Chip & PIN May Increase UK's Overall Check Fraud. Tarjetas Inteligentes :: Smart Cards

Chip & PIN May Increase UK's Overall Check Fraud


Fecha Viernes, agosto 06 @ 05:57:57
Tema Tarjetas Inteligentes :: Smart Cards


Credit card skimming in 2003 comprised one-quarter of the UK’s card fraud total
of Stg 402.4 million, according to card industry association, APACS. While the
UK banking industry is currently spending Stg 300 million to deploy EMV
chip-and-PIN cards and POS infrastructure, APACS has warned that the security
of chip-and-PIN will take two to three years to kick in. London is already a
magnet for fraudsters, who typically buy cloned cards for USD 400 to 700
apiece, and spend an average of USD 2,800 per card over a two-day period before
jettisoning the card.


Once EMV infrastructure gains critical mass in the UK, banks are expecting a
parallel increase in check fraud as frustrated card thieves seek the next
weakest link in the payments chain. The British Bankers Association is already
advising high street banks that fraud will migrate from plastic card sources to
non-plastic card sources after the adoption of chip and PIN. Check card fraud,
ironically, more than halved in the ten years to 2002, to a total of Stg 147
million, but the BBA, Cifa (the UK’s fraud prevention service) and
check-cashing firms are working to make consumers aware of an anticipated
growth in this fraud.

Harvey Nichols and Waterstones, as the latest major UK retailers to EMV-enable
their POS infrastructure, are also taking the opportunity to integrate their
respective supply chain and ePOS systems for improved inventory control and
store operations. Either way, over 42 million cardholders and 1.5 million
retail staff will need to get to grips with EMV chip cards, while more than
850,000 retailer card terminals, 122 million cards and 40,000 cash machines
will require adapting for the chip era. Two in five cardholders currently have
a chip card, and by December 2004, most face-to-face transactions in the UK
will be chip-based.



(The Times) Jul 21 2004
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