Chip and PIN Was Meant to Beat Credit Card Fraud. Guess What? It's Up 50%
Byline: Sean Poulter Consumer Affairs Editor
CARD fraud has leapt almost 50 per cent since the introduction of the chip and PIN system that was supposed to cut the problem.
The total hit a record high of [pounds sterling]609.9million in 2008, which was 14 per cent up on the previous year.
More disturbingly, the figure has jumped by [pounds sterling]182.8million - 43 per cent - since the chip and PIN system became universal on Valentine's Day in 2006.
The surge in card fraud comes as the big banks are taking a tough line with victims and increasingly refusing to pay refunds.
At the same time the Home Office has decided that it is no longer the job of the police to record and investigate card fraud.
Now police forces across the country are directing victims to their banks, rather than mounting investigations.
The card fraud figures come from the banking industry trade body, APACS, which has also seen a 132 per cent annual rise in theft linked to online banking.
The introduction of chip and PIN, under which payments are authorised with a four-digit code rather than a signature, required an investment of more than [pounds sterling]1billion in new till machines.
The huge cost, passed on to shoppers in higher bills, was justified on the basis that it would drastically cut debit and credit card fraud.
However, the reality is that it has provided a springboard for a massive explosion in the cloning of cards.
Before the change, PINs were used at some 50,000 bank cash machines. Now they are used at more than 900,000 tills, including high street stores and restaurants. …