Warning over chip and PIN theft
Gangs are developing technology to steal customers' bank details from inside retail chip and pin machines, police have warned.
The new scam came to light when police raided an alleged card fraud factory in Birmingham on Monday.
Police believe thieves are hiding devices inside check-out card readers to unscramble codes and reveal customers' PINs. They then clone new cards, which will not work in UK cash machines, to withdraw money abroad.
During the Birmingham raid, stolen chip and pin terminals, card account numbers, card readers, computer software and counterfeit magnetic stripe cards were recovered.
The technology could be used to infiltrate retail chip and pin units and make new cards for use in countries that don't use chip and pin devices.
Card fraud abroad has increased by 77% in the past year, and costs £207.6 million, the specialist police force for card fraud in the UK, the Dedicated Chip and Plastic Crime Unit (DCPCU), said.
Officers said 30 checkouts in the UK had been affected by the new type of fraud, with petrol stations most likely to be targeted by fraudsters.
Detective Inspector John Folan, head of the DCPCU said the arrests in Birmingham were a "significant development".
"We are sending a very clear warning to fraudsters that these crimes will not be tolerated, and that we will continue to target them and disrupt their fraudulent activity," he said.
Two people were arrested after the Birmingham raid and charged with conspiracy to defraud. Inspector Folan said: "These arrests are a significant development in our fight against the organised criminal gangs responsible for this type of fraud."
Related Stories
- 18 August 2009 Ex-spy is 'biggest card hacker'
- 6 May 2009 Post office ID card role discussed
- 7 April 2009 ID cards 'could use chip and pin'
- 6 November 2008 Some ID cards available next year
- 23 April 2008 Internet fraud 'up to £500m a year'
