[nukkad] **JUNK** Shell halts chip-and-PIN after fraud

["Pravin Kumar. RRd" <>]

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                  The Times May 08, 2006 


            Shell halts chip-and-PIN after fraud
            By Joanna Bale
           
     
     
            SHELL petrol stations have suspended chip and PIN payments after 
fraudsters stole more than £1 million from customers by implanting skimming 
devices into pin pads. 
            Eight people have been arrested in connection with the racket which 
has demonstrated for the first time that chip and PIN machines, which were 
meant to end card fraud, are far from tamper-proof. 

                 
                 
            Hundreds of customers at three Shell petrol stations have had their 
credit and debit card details copied and then money withdrawn from their 
accounts using cloned cards. It came to light when the customers noticed money 
missing from their accounts. 

            Police suspect that fraudsters posing as engineers have altered the 
pin pads or that employees are involved in the scam. 

            The developments are a huge embarrassment for the banks who assured 
the nation that the chip and PIN system would stop card crime. 

            Sandra Quinn, of the Association of Payment Clearing Services 
(Apacs), said: "They have used old-style skimming devices which are usually 
used at cash point machines in public places. 

            "They are skimming the cards and copying the magnetic details. 
There is no new fraud here, but it is the first time we have seen it used on 
chip and PIN machines inside a shop. They have managed to tamper with the pin 
pads. These pads are supposed to be tamper-resistant - they are supposed to 
shut down - so that has obviously failed." 

            The chip and PIN machines used by Shell are made by Trintech, a 
company in Dublin, which has supplied terminals in thousands of shops, 
restaurants and other outlets across the world. 

            The Dedicated Cheque and Plastic Crime Unit, staffed by the 
Metropolitan Police, is investigating the £1 million scam. Those arrested 
include one person from Guildford, Surrey, and another from Portsmouth, 
Hampshire, according to Apacs. 

            The scam works by criminals implanting devices into chip and PIN 
machines which can copy a bank card's magnetic strip and record a person's pin 
number. The device cannot copy the chip, which means any fake card can be used 
only in machines where chip and PIN is not implemented - often abroad. 

            Shell has suspended the chip and PIN mechanism in 600 of its petrol 
stations across the country. Ms Quinn said that the fraud related to just three 
Shell outlets: "This is a specific issue for Shell and their supplier to sort 
out. We are confident that this is not a systemic issue. 

            "It's related to a certain make of pin pad and the way it was used. 
Petrol stations have traditionally had a lot of problems with card fraud and 
collusive merchants." There are nearly 1,000 Shell outlets in Britain, 400 of 
which are run by external franchisers who will continue to use the chip and PIN 
service. 

            It is hoped that the suspended chip and PIN in the remaining 600 
petrol stations will be restored by today. 

            A Shell spokeswoman said: "In the interests of our customers, we 
have temporarily suspended chip and PIN availability in our UK company-owned 
service stations. Customers are unaffected by this action - you can still pay 
for your fuel, goods or services with your card by swipe and signature." 

            BP is also looking into card fraud at petrol stations in 
Worcestershire, but it is not known if this is connected to chip and PIN. 

            The finance industry and retailers have spent £1 billion issuing 
141 million chip and PIN cards and installing new terminals at which they can 
be used. 

            But fraud experts fear that sophisticated gangs of criminals will 
always find a way of beating the system.
           
     



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