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Criminals Crack Chip-and-Pin Technology Wide Open

UK police have arrested a Birmingham based gang, which reportedly developed a technique to steal card details, and make counterfeit cards from it.

The issue has sparked debate over the pliability of Chip-and-PIN technology in card security, and called for an urgent need of revamping the security procedures comprehensively.

Officials from UK’s Dedicated Cheque and Plastic Crime Unit (DCPCU), raided a factory in Birmingham, and seized several bogus cards and the equipment that cracks the Chip-and-PIN security; further, the police also arrested two people, who are said to have connection with the scam.

John Folan from DCPCU reported that the hacked chip-and-pin terminals are found in 30 shops across UK.

These fraudsters steal card readers and place a hidden card tracking device in it, which traces the required information from the card when any customer enters his pin number.

The issue first raged during a reported GBP 1 million fraud in Shell in 2006, and the company withheld its authorisation procedures for a short span; however, banks maintained that the scam didn’t affect the payment methods much.

Désiré Athow
Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.