Light Blue Touchpaper » Blog Archive » Chip and PIN is broken

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URL

http://www.lightbluetouchpaper.org/2010/02/11/chip-and-pin-is-broken/

Description

The tech details will be lost on most of you, but in brief: if an attacker can get your card cloned, then they can also pretend to know your PIN - fraudulent transactions they make will be reported to the bank as "Verified by PIN". This is bad, because if a transaction is reported as "Verfiied by PIN" then as far as the bank is concerned it's legit, and not disputable. Chip and PIN is, and always was, design to protect the banks, and not the consumers. Just y'know, saying. You might want to write angry letters to your banks, and suchlike.