Chip and PIN security warning for retailers

Retailers are being warned to beef up chip and PIN security to prevent fraudsters stealing card and PIN details by bugging terminals or 'shoulder-surfing' other customers.

The UK payments association Apacs has produced the Transactions with your chip and PIN terminal guidelines to highlight how card-accepting businesses can more effectively protect themselves and their customers.

The advice stresses the importance of raising staff awareness about how criminals target card data in shops and encouraging employees to report any issues or concerns they have.

Criminals can exploit chip and PIN readers by using bugging equipment or software to capture data or by installing fake equipment by posing as engineers, according to Apacs.

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Sandra Quinn, director of communications at Apacs, said simple measures such as staff training will "significantly reduce" the chances of businesses falling victim to fraud or being targeted by fraudsters.

Other advice includes locating payment terminals where customers can use them without others being able to see their PIN number as they enter it.

Retailers are also advised to keep an inventory of terminal serial numbers and their location and use CCTV to monitor them.

Since chip and PIN was introduced Apacs says the technology has had a dramatic effect on reducing card fraud in the UK.

Since 2005 losses through face-to-face card fraud have fallen by 67 per cent.

Apacs also recently published guidelines advising consumers how to keep their PIN safe.

More than 900,000 UK shop terminals (98 per cent of all tills) have now been upgraded to chip and PIN, with more than 185 transactions taking place every second.

The chip and PIN security advice is available here.