Chip and PIN System Weakened
It has been revealed that over eight million adults have given their chip and PIN details to someone else to make a purchase on their behalf, or get money from a cash machine for them, threatening the very viability of the system.
And of eight million people sharing such details, an alarming 24% have fallen victim to fraud.
The figures come from research by insurance company LV= which discovered that one in five UK residents tell friends and family their PIN numbers, leaving themselves open to chip and PIN fraud.
And finance experts have again warmed that such habits not only leave the person vulnerable to fraud, but threaten the credibility of the Chip and PIN system.
They also point out that ID fraudsters can quickly clock up many thousands of pounds of purchases by cloning a card and banks may refuse any kind of refund if the card owner has shared their PIN with others. Banks have a get-out clause in the event of card fraud, if they considered the card user to have acted without reasonable care and attention. Sharing personal security numbers is seen as such a case of acting without due responsibility.
The research revealed that most borrowed cards are lent for the purpose of obtaining cash from ATMs. The findings went on to reveal that almost one in ten (9%) have told someone the details over the phone, 7% have written them down and 6% have given them face to face in a public place.
Businesses should also take their fair share of the blame said the report, as they did not pay enough attention as to who was using the card at the till. This lack of attention meant that may retailers were potentially opening themselves up for huge losses and counter-claims.
John O’Roarke, managing director of LV= home insurance, said: “It’s concerning to see the numbers of card-holders who are so lax with their card details, even if they are sharing them with their friends and family. We would strongly urge all card-users not to tell anyone their PIN number. Not only does it undermine the security of your account and increases the risk of ID fraud but also card holders could end up out of pocket if they are found to have shared their card details.
“We’d urge any customers who think they might have become a victim of identity fraud, to call our Identity Fraud Helpline for help and support.”
Guest Article by Neil Camp
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My name is Alan Potts and I'm the Editor of the BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 
