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Chip and pin leads to ATM fraud abroad(Evening Standard Via Thomson Dialog NewsEdge)A BANK said today it had seen a surge in overseas ATM fraud following the introduction of the chip and pin system. LloydsTSB said that criminal gangs were cloning the magnetic strips on debit and credit cards and using them to withdraw cash at ATMs abroad. It is thought fraudsters may use the cards abroad because they take information off a card's magnetic strip, rather than its microchip, which is much harder to copy. It may also take longer for ATM transactions made overseas to show up. Lloyds TSB said today that it had moved to close the gaps in its security system. Chip and pin was brought in to help combat the growing problem of card fraud. Last week it emerged that fraudsters had taken more than GBP1 million out of people's bank accounts after copying their card details through chip and pin terminals at petrol stations. But despite the problems, the introduction of chip and pin cards have had a big impact on fraud, with industry figures showing that total card fraud fell by 13 per cent to GBP439.4 million last year. |