Chip and PIN intro fuels ‘mini-boom’ in card crime

Return to fraudster


The mass replacement of credit and debit cards with the UK roll-out of Chip and PIN is fuelling a 'mini-boom' in card crime, The Guardian reports. Crooks are intercepting replacement cards in the post and using them to commit fraudulent transactions. Often, bank cards users are not expecting to receive new cards, so they won't realise anything is amiss until they receive their monthly statements.

Chip and PIN began in October 2003 and is designed to make credit and debit card purchases more secure. Consumers are asked to enter a four-digit PIN code instead of signing to verify card transactions. Newly-issued credit and debit cards will come with smart chips to recognise this PIN number when transactions are processed. Up to 130m new Chip and PIN cards will be sent out by the end of the year, at which point retailers who haven't introduced the new scheme become liable for fraudulent transactions.

As more cards are been sent out, a greater number are being intercepted by thieves. The industry lost £43.4m to "mail non-receipt fraud" in 2003 and this can only be expected to increase this year. Most cards are sent through Royal Mail's standard service, rather than couriers or Royal Mail's more secure premium service such as Registered Delivery. Last year more than 14m items of post were lost in transit.

In London alone, police are getting "three to four" people a day reporting such thefts, according to The Guardian. Victims were often unaware that their bank had sent them a new card because their previous card remains valid. In some instances crooks had managed to steal not just new Chip and PIN cards but the PIN number that goes with them, allowing crooks to empty accounts using cashpoints.

A spokeswoman for the Association for Payment Clearing Services said that consumers would not be liable for such losses. "For the banks it is a risk assessment exercise, but you have to remember that the majority of cards arrive without problem - when they do go missing in the post the customer is not liable for any subsequent losses," she said. ®

Related stories

Cardholders clueless on Chip and PIN
Chip and PIN gathers pace
UK terminally unready for Chip and PIN
UK credit card fraud down 8%
Chip and PIN hits 8 million cards
Chip and PIN goes national


Other stories you might like

  • Meet Wizard Spider, the multimillion-dollar gang behind Conti, Ryuk malware
    Russia-linked crime-as-a-service crew is rich, professional – and investing in R&D

    Analysis Wizard Spider, the Russia-linked crew behind high-profile malware Conti, Ryuk and Trickbot, has grown over the past five years into a multimillion-dollar organization that has built a corporate-like operating model, a year-long study has found.

    In a technical report this week, the folks at Prodaft, which has been tracking the cybercrime gang since 2021, outlined its own findings on Wizard Spider, supplemented by info that leaked about the Conti operation in February after the crooks publicly sided with Russia during the illegal invasion of Ukraine.

    What Prodaft found was a gang sitting on assets worth hundreds of millions of dollars funneled from multiple sophisticated malware variants. Wizard Spider, we're told, runs as a business with a complex network of subgroups and teams that target specific types of software, and has associations with other well-known miscreants, including those behind REvil and Qbot (also known as Qakbot or Pinkslipbot).

    Continue reading
  • Supreme Court urged to halt 'unconstitutional' Texas content-no-moderation law
    Everyone's entitled to a viewpoint but what's your viewpoint on what exactly is and isn't a viewpoint?

    A coalition of advocacy groups on Tuesday asked the US Supreme Court to block Texas' social media law HB 20 after the US Fifth Circuit Court of Appeals last week lifted a preliminary injunction that had kept it from taking effect.

    The Lone Star State law, which forbids large social media platforms from moderating content that's "lawful-but-awful," as advocacy group the Center for Democracy and Technology puts it, was approved last September by Governor Greg Abbott (R). It was immediately challenged in court and the judge hearing the case imposed a preliminary injunction, preventing the legislation from being enforced, on the basis that the trade groups opposing it – NetChoice and CCIA – were likely to prevail.

    But that injunction was lifted on appeal. That case continues to be litigated, but thanks to the Fifth Circuit, HB 20 can be enforced even as its constitutionality remains in dispute, hence the coalition's application [PDF] this month to the Supreme Court.

    Continue reading
  • How these crooks backdoor online shops and siphon victims' credit card info
    FBI and co blow lid off latest PHP tampering scam

    The FBI and its friends have warned businesses of crooks scraping people's credit-card details from tampered payment pages on compromised websites.

    It's an age-old problem: someone breaks into your online store and alters the code so that as your customers enter their info, copies of their data is siphoned to fraudsters to exploit. The Feds this week have detailed one such effort that reared its head lately.

    As early as September 2020, we're told, miscreants compromised at least one American company's vulnerable website from three IP addresses: 80[.]249.207.19, 80[.]82.64.211 and 80[.]249.206.197. The intruders modified the web script TempOrders.php in an attempt to inject malicious code into the checkout.php page.

    Continue reading

Biting the hand that feeds IT © 1998–2022