Some people say there's a woman to blame, but I know...it's my own damn fault- Jimmy Buffet
"PIN's Blame Abroad...They're Not Smart...Oui Are"
After 3 years of dismal results from the highly heralded Chip and PIN platform, which embeds circuits (Smart card) onto the card, is this the beginning of a propaganda-laced campaign by APACS aimed at deflecting criticism off their (what might be aptly renamed "Phish and Chip") program?
According to every published article I've read, the common denominator is "It's not their fault...it's the countries that haven't followed their lead and incorporated a Chip and PIN system". So they're waiting for everyone else to "get smart" cards and then it'll be OK. Unfortunately for APACS, the US has absolutely no designs on incorporating that system, thus it looks like APAC'SOL. "Sorry about that chief"...Here's a collage of information from various UK media outlets spewing their spin on the failed ability of Chip and PIN to reduce fraud.
To see APACS report click here
According to APACS, fraud losses for debit and credit cards increased to £307 million in the UK - compared to £267 million over the same period last year. This is a 13 percent rise.
The total amount lost to the fraudsters reached a record £301.7 million in the first half of the year - more than before chip and pin security was introduced in 2006. £121.2million - or 40 per cent of the total - involved fraud committed on cloned or stolen UK cards using cash machines abroad, a 190 per cent rise in just three years.
The figures were boosted in particular by overseas fraud, which made up 40 percent of the total. Phone, internet and mail order scams were another pressure point, fraud from which rose 18 percent to £162 million.
While card fraud fell from £219.5million in 2005 to £209million in the first half of 2006 following the start of chip and pin, it rose to £263.6million in 2007.Although the banking industry insisted that card fraud would have continued to rise sharply if chip and pin had not been introduced, in reality it has provided only a temporary halt, with fraudsters finding new - and more lucrative - ways to operate.
Last month, police warned that many gangs have installed fake chip and PIN readers in small shops and petrol stations to record the information on a credit card's magnetic stripe. A security camera then notes the customer's PIN before the card is cloned and used at a cash machine, usually abroad. Police suspect the money raised is not only fueling the activities of international criminal gangs involved in drug running and prostitution, but also terrorism
However, Sandra Quinn, of APACS, insisted: 'Criminals continue to target those areas where we do not currently have the security benefits of chip and pin, causing increases in fraud abroad and phone, internet and mail order shopping fraud.
"Fraud abroad will be more difficult for criminals to commit as more countries roll-out chip and pin. (Last I heard, the US isn't going to spend the billions of dollars needed to roll out that program, so I would translate that as "Fraud abroad will continue to be easy for criminals...)
"To help tackle online fraud, we urge shoppers to protect their computer with anti-virus software, only use secure websites and use systems that make cards more secure when shopping online."
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