Anti-fraud chip cards gather pace
More than eight million chip and pin credit and debit cards, designed to curb fraud, are in use in the UK. The technology was rolled out nationwide last October following a successful trial in Northampton.
Banks have issued the new style cards to one in six customers and claim fraud could fall 70% by 2005.
The technology works by getting customers to verify a transaction by keying in a four digit Pin number, rather than signing a receipt.
The new technology is aimed at combating the growing problem of "skimming" - the most common method of counterfeit fraud.
The magnetic strip on the back of cards is copied by fraudsters using a handheld card reader.
The card can then be "cloned".
The new cards have a thumbnail-size microchip, which stores personal data more securely than the magnetic stripe, making it harder to counterfeit.
Somebody forgot to tell Morgan Stanley. They won't be rolling it out until at least January 2005. However, must say thier fraud investigation department is kept busy - I get a phone call everytime I use my card in France, and if I use it more than 3 times on the internet in one go.