Chip and pin effective against credit card fraud

12 January 2005
Fraudsters have been driven away from credit card crime by the new chip and pin security system.

But while card crime fell, fraudsters have intensified their internet activities.

Retail Decisions found a 25 per cent hike in attempted fraudulent transactions on line January 1st and January 6th, compared with the same period in 2004.

"Chip and pin will reduce fraud on lost or stolen cards, no question about it. But fraudsters cannot go hungry," Carl Clump, the chief executive of Retail Decisions, said.

"They are migrating to card-not-present fraud."

A spokesman for Chip and Pin added: "Unfortunately, there is more than one type of card fraud. Chip and pin is only one type of initiative.

"But anything that cuts down on fraud has to be a good thing."

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