[Gllug] credit cards - chip and pin

[john at sinodun.org.uk]

[snip]
> I have just been hit with a substantial Hotel Bill from a hotel in
> Newcastle that I never stayed in, via my switch card.  From
> conversations with the Hotel it appears that someone checked-in and ran
> up the bill but told the receptionist that I would be paying on my
> switch card, which a third-party then provided the details thereof over
> the telephone.  Voila,  my bank account is debited and the fraudster
> concerned drives off into the sunset !   No doubt the car reg number
> that he/she provided to the Hotel was false.

In this case the loss is entirely the Hotel's.  Goods ordered over the
phone with a card - "customer not present" is the term - must be
delivered.  If they are collected, as was the case here, the CNP
transaction must be abandoned and a fresh one done using a physical card
and signature/PIN.
If you quote your card number over the phone when making a reservation
then the you must also present the card at the time of payment.
> No chip and pin scheme is going to stop this kind of fraud.

True.  If the Hotel's staff don't know what they're allowed to do then
anything can happen.
John


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