Fergie's Tech Blog

Is My Bank The Biggest Scammer Out There?

Liam Tung writes on the ZDNet Australia "Securify This!" Blog:

Under the British Bankers' Association code -- a voluntary code of practice similar to Australia and New Zealand's banking association structure -- the onus is on the bank to prove users have acted fraudulently or without reasonable care before they become liable for the misuse of the card. If it can't, the user isn't liable.

But since the introduction of chip and PIN cards, consumers are increasingly being turned away by banks when making a compensation claim.

That's because chip and PIN technology prevents cards from being cloned through card skimming scams. But so sure are the banks of this bulletproof technology that some are assuming that if a fraudulent transaction occurs where a PIN has been used, it must have been the cardholder's fault.

Bulletproof it's not though. Researchers at Cambridge University recently showed that you don't need to clone a card to compromise it.

posted by Fergie @ 1/21/2008 07:05:00 PM