Chip and PIN was designed to prevent fraud, but it also created a new opportunity for criminals that is taking retailers by surprise. Known as “forced authorisation”, committing the fraud requires no special equipment and when it works, it works big: in one transaction a jewellers store lost £20,500.
Source: www.benthamsgaze.org
This type of fraud is already a problem in the UK, and now that US retailers have made it through the first Black Friday since the Chip and PIN deadline, criminals there will be looking into what new fraud techniques are available.