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.