Lloyds TSB admits chip and Pin flawed

[Chris Walsh <cwalsh () cwalsh org>]

[ got this from a closed mailing list -- may have some relevance ]

Title:  Lloyds TSB admits chip and Pin flawed
Author: Sean Poulter
Source: Daily Mail

Excerpt:

A major bank has finally conceded that serious flaws in the new chip and 
PIN system has opened it up to fraud. Lloyds TSB admitted a surge in 
thefts by gangs who clone debit and credit cards then plunder accounts 
at ATMs overseas.

The crooks not only steal the card details, but also the four digit Pin 
codes which have replaced signatures to authorise purchases.

The cloned cards are then used to make repeated raids on accounts using 
foreign cash machines because these transactions take longer to show up 
as a rogue spending pattern in banks' security procedures.

The Daily Mail has learned that the monitoring systems of some banks do 
not include cash withdrawals from foreign ATMs as they have assumed ATMs 
are secure. The industry has focused fraud detection on card purchases.

Yesterday Lloyds, which has 15m personal account customers in the UK, 
admitted the problem and said it had moved to close gaps in its security 
system. A spokesman said: 'In recent weeks, we have identified an 
increase in fraud via overseas cash machines.

For complete article see: 
http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=408976&in_page_id=2&ito=1565
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