Abacus Daily Debt News

Debtors at risk from chip and pin?

Those in debt may find their situations exacerbated if their bank cards are either lost or stolen, as it has emerged that the technology is not foolproof.

According to research conducted by the University of Cambridge Computer Laboratory, the system itself is flawed and it is possible for someone to trick the card into believing that it is conducting a chip-and-signature purchase, with the terminal thinking it is chip and pin.

Transactions can be completed both in-person and online but Jemma Smith of UK Payments - an information portal for making payments in Britain - noted that, while this is possible, it "doesn’t necessarily transcribe to something which is applicable for fraudsters in the real world".

She went on to note that fraud is decreasing and, for lost and stolen plastic, it has fallen to its lowest level in 20 years.

"Chip and pin is not broken," Ms Smith asserted.

By Sarah Adie