Fraudsters have hijacked Chip and PIN

It seems that crims have finally broken the algorithm system for Chip and PIN, as, when police raided an alleged card factory in Birmingham the other day, they found a ton of kit needed to make forged cards on a massive scale.

It's difficult to work out from the news reports I've seen exactly how the crims have cracked the system, but it seems to centre on the use of modified C&P terminals which the fraudsters have been swapping out at a number of merchants.

And there's me believing the APACS hype that tampering with a terminal results in the electronics auto-destructing!

The cards are not fully C&P compliant, however, as some reports suggest that some cards can only be used in magnetic stripe mode, suggesting that some banks are better than others at protecting their C&P algorithms and technology,

As you might expect, the US is reportedly the worst-hit by this type of crime, followed by Italy and Australia, according to the Dedicated Cheque and Plastic Crime Unit in the UK.

The Plod, meanwhile, say they have arrested two people in connection with the Birmingham raids and have charged them with conspiracy to defraud.

Check out more on this interesting development here...