By Sylvia Carr, 11 August 2004 14:20
NEWS Though the 1 January, 2005, deadline for the UK's switchover to chip-and-PIN technology is fast approaching, the British public appears unprepared for the change.
More than half of cardholders (60 per cent) have little or no knowledge of chip and PIN, and 56 per cent are concerned the technology will increase the risk of their PIN being stolen, according to new research commissioned by IT consulting firm Detica.
Chip and PIN is a scheme for credit and debit cards whereby cardholders are required to enter a PIN into a keypad instead of signing when making purchases at shops or in restaurants. The aim is to cut down on credit card fraud.
David Porter, head of security and risk for Detica, said that the hope for making sure shops aren't chaotic this holiday season is to educate shoppers. Though banks need to take part, the onus of informing the public will probably fall on retailers because it's in shops that most consumers will first come in contact with the technology.
Porter said: "Retailers have to play their part in educating consumers - whether it's fair or not - because they're seen as the enforcers of it."
Seventy per cent of the 1,002 individuals surveyed say they're confident chip and PIN will offer greater protection against theft and fraud than signatures, indicating those who have been educated are largely positive about the scheme.
The education provided by retailers should include everything from signs in stores to TV and radio ads explaining not only how chip and PIN works but also how to best manage PINs.
On average people have five PINs and about half of cardholders use the same number for one or all, according to the survey.
Shoppers must learn to change PINs periodically, to avoid obvious numbers (such as one's birthday or '1234'), to not use the same PIN for all cards and to be very careful where they write down PINs, said Porter.
Though admitting nothing will wipe out credit card fraud altogether, Porter believes the chip-and-PIN technology is secure. However, he's concerned by "the softer issues", such as PIN management, because "with security, humans are the weakest link".
While only 55 per cent of those surveyed have received their chip-and-PIN cards, Porter is confident shops and banks will make the January deadline of putting in place the new technology. "It's unclear, though, whether they'll make the deadline of educating people about PINs," he said.
Comments
There are 18 comments. Join the discussion
1. Peter van Buiten
Why is it that this country is so slow to introduce new technology?
For example; Chip and Pin has been in use in Holland for many years.
Cable has been in use in Holland for 25 year. Is it the UK citizens or is it UK enterprise that is slow to adapt to technology changes?
2. CB
It would be nice if the infrastructure for chip and pin actually worked.
I recently decided, knowing that I could never remember my pin, to change it to something more memorable. I used a Link machine to do it, and when I pressed the "Pin services" button, the machine crashed (Windows NT of course) and took my card with it.
I've since received a replacement card, only to find that the new pin supplied for the new card doesn't work either. I'm now waiting for a third card and a third pin (sent out twice because the customer service guy couldn't wait to get me off the phone). Perhaps this time, it'll actually do what it's supposed to do.
If it doesn't, I'm considering cutting the card into peices and sending it back to the credit card company in question with an extremely snotty letter.
3. Charles Wood
I think chip and PIN could become a banking disaster: I have two numbers and in two years I have already been locked out of each system twice.
The amusing part of this was going to the local Halifax and watching the manager curse as he too typed in the wrong pin twice and was locked out!
I think it is easier to steal a 4 digit number than copy my signature.
Had anyone else noticed that the onus for security has been quietly switched from the reciever of money checking a signature, to the individual protecting their PIN?
Banks are the nastiest bunch of legal twisters I ever came across: why else do they all charge the same for transactions, and not get prosecuted for forming cartels?
4. Allan Knowles
It gets better! The Chip & PIN project team's policy is that the banks and retailers (if they ask) do NOT give out any means of recalling PINs. Helpfully, they also suggest that you use at least 3 different PINs rather than 1. I pity the banks as they are getting hammered with the cost of re-issuing PINs over and over again. Still, I've got a Pincard so don't have this problem. (www.cardextras.com)
5. John Hughes
It’s a good thing that chip and pin cards are to be used but only if the person entering the pin number can't be overseen by onlookers, who can then steal their card, this is not too hard for thieves. Some of the ways stores handle the input of pin numbers is to say the least to open.
6. Mike Barrett
The concept behind the Chip and Pin is fine, with one exception - no signature is required.
Once your card and pin have been stolen then a thief can go on a spending spree, until the card has been blocked. At least the criminal has to forge a signature when present in a shop.
The second problem occurs with faulty chips. Even though I am never asked to key my pin one of my cards is continually rejected because the chip does not work. There is no alternate way to use the card, and a couple of times I have left the shop without goods. Why should a perfectly good transaction be turned away because the credit card company has not got a contingency in place to handle these exceptions? Or is it that the store staff need educating not the consumer?
7. anonymous
Its all very well introducing this new technology as long as the basic guidelines regarding drawing cash at the bank are followed through to the high street. How many people will be stood right behind you at Tesco looking over you shoulder while you put in your pin instead of the behind the white line outside the bank?
8. I hate dell
How can people not know what it is. Letters have been sent out & it's been advertised too! Even the most technically challenged of people should be able to understand how it works.
9. John Waller
Its OK advising not to have the same number for every card but you can only remember so much.
4 Credit cards , Mobile Phone unlock code, house alarm, 3 computer room digital lock codes, car radio code, about 12 computer / internet account passwords.
If all this information was unique I'd forget to get up in a morning.
10. Richard
It is usually obvious if somebody has forged a signature and Card Issuers are quick to cancel fraudulent items from bills.
But with Chip & PIN, the onus will be on us to prove that we haven't given our PIN out. Though fraud may be less common, we may be stuck with the bill when it does happen. This is not so good!
No system is 100% secure. Human error etc. etc. etc.
The only way to remember all my 5 PIN numbers will be to make them the same or related - and that is like one key fitting the door locks to all blue cars...
11. Julie Mayling
I'm very concerned about the new chip and pin system. 1. People will be able to see you punch in your pin and it is easier to remember a four digit number than a signature at a glance. 2. People will be carrying all their pin numbers with them in case they forget them. 3. If the pin is forgotten at the cash desk people will see where you hide your pin numbers (mobile or address book) The result of these points would be lesser security not greater.
12. Jobby Jobson
With all the camera in stores nowadays, any dodgy operator could see the numbers you type in without you even realising it - teamed up with a pickpocket and they can purchase whatever they like on your card.
13. Sandra Quinn
Dear Sir,
Contrary to recent reports concerning the public’s attitude towards chip and PIN (Britons just not ready for chip and PIN, 12 August 2004) there is extensive independent research which shows that the public are embracing chip and PIN.
Furthermore, when a change on the scale of the move to chip and PIN is going so well, it is a great shame that a small number of companies try to cause panic with negative stories in order to promote their own products or services.
Extensive consumer research has been undertaken throughout the chip and PIN trial and subsequent national rollout. The independent research amongst active credit and debit cardholders has found that consumers love the new technology and can’t wait to start using it. The most recent research shows that over 90 per cent of cardholders questioned had heard of chip and PIN when prompted, and two in five active chip and PIN cardholders already agree that they expect their next transaction to be made using chip and PIN.
It is also worth bearing in mind that the Detica research base included people under 18 years old, and more than 20 per cent of those who responded were not cardholders.
By the end of May 2004 more than two in five cardholders had been issued with a chip and PIN card, and this figure will have increased substantially by Christmas. The vast majority of chip and PIN cardholders and retail staff will have had time to get used to the new system well in advance of the Christmas rush and January sales.
As part of our ongoing communications programme we will be launching a further national print, radio and television advertising campaign in the next few months to ensure customers and retailers have all the information they need. We are also constantly engaging with retailers and other businesses to provide as much information as possible on chip and PIN so they are prepared for increasing number of chip and PIN transactions.
14. Ken Vickers
Chip and PIN is a really poor idea.
So many people cannot remember pin numbers that they will carry them written down or use one pin number for all cards. I cannot understand why so-called security experts can possibly concieve of such an insecure idea. Systems developers must consider what sort of people will use the technology and what sort of behaviour to expect from them.
15. anonymous
Chip and bin!
I am deeply concerned about a national issue with regard the new "chip and pin" that the Labour party have decided to introduce to protect us. I have been informed by someone at Lloyds TSB that this is the case.
The idea is flawed. I received such a debit card card from Abbey National. The idea is that its to replace ones signature and personal details contained on the strip on the back of the card with details stored on a micro chip implanted in the card. Idea being all you need is your pin. If this is the case why have I been issued with a card that has *both the signature, strip and chip & expires 2008? Not even Abbey national helpdesk when contacted could answer this in any informed manor.
Would you feel happy for example typing your pin in a crowded place to pay for something in a shop, when it could easily be seen. Unlike the signature all they need do is see your pin, nab your card and bang goes your life savings!
I am expected to believe this is more secure. I thought the government handed over controls to the bank of England when they came into power, why now are they trying to control how I bank?
Why the photo driving license works is because it incorporates photo id. How many outlets use chip and pin in the UK, less than 1% I expect.
It seems like the government wishes to confuse us with not only the euro but also wishes to muddy our perception on security of our life savings. If this is an issue
about compliance with Europe lets stay out, anyway our pound has our beloved Queen on, something that other nations admire, ask any American! I mean admire our Queen = Admire our currency.
I would be interested to know why we the general public were not sent notification on such issues to opt in or out of chip and pin or use photo id as an alternative.
16. anonymous
Both PIN & Signature may be required. I have found this to be the case at time when refunding.
17. Tim
I don't understand why they are charging you to use the Chip and Pin card abroard.
What do they need the money for?
18. anonymous
I remain amazed at how slow the UK is in this field, we have used PIN technology in New Zealand for over 10 years (as long as I have lived here after emigrating from the UK) and it is a fact of everyday life from paying your supermarket bills to buying some sweets at the corner dairy. To see the moans eminating from some of the UK public sector abour just how difficult it will be really does make me believe that the poms whinge about anything - sad really