Researchers uncover flaws in Chip and Pin system

A TEAM of researchers said they had uncovered flaws in the chip and pin system which are being exploited by fraudsters to use stolen cards.

The group from the University of Cambridge's Computer Laboratory found that criminals can insert a "wedge" between the stolen card and terminal, tricking it into believing the pin was correctly verified, when in fact any pin can be used for the transaction to go through. The card meanwhile thinks it was authorised by signature.