[Gllug] credit cards - chip and pin

[t.clarke]

Further to previous missives about credit cards, chip and pin, etc,
the one area of fraud that the new scheme seems to totally fail to address,
is 'cardholder not present' fraud.

Once someone has obtained your card number, name, expiry date and the three-
digit 'security' number on the reverse (eg from someone you have given that
same info to when purchasing something over the telephone !) they can merrily
charge anything they like to your card.

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.

No chip and pin scheme is going to stop this kind of fraud.  The banks need to
implement some kind of 'one-time' security-number scheme so that once you have
used a security number once against a card it cannot be reused.  Cards are
being used more and more over the telephone and the internet.

Finally, ironically, having cancelled my card last nigfht to avoid it being mis-
used again, the Hotel cannot credit back my account via the card number, as it
no longer valid !!  I will now have to leave it for the Bank and the Hotel to
sort the mess out between themselves.


Tim

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