Customers still waiting for chip and PIN cards

Customers still waiting for chip and PIN cards

Over six months after the introduction of chip and PIN technology in the UK, less than half of consumers have received replacements for all of their cards.

A National Opinion Poll (NOP) survey commissioned by Retail Decisions (ReD) and conducted in June 2005 found that only 44% of adults have been sent all their replacement chip cards. Over a quarter have had "some" cards replaced, while 12% haven't had any cards replaced at all.

According to the research over a third of cardholders are (37%) are still waiting to receive PINs for all their chip cards.

The survey also found that confidence in the new technology is decreasing. Retail Decisions says in January 2005, 69% of adults believed the technology would succeed in the fight against card fraud, but the latest survey shows that number fell by 13% in six months.

Earlier research released by Retail Decisions showed that card-not-present (CNP) fraud increased in the UK following the roll out of chip and PIN technology. The company says this trend has continued, with an internal analysis carried out by Retail Decisions showing attempted fraudulent card-not-present (CNP) transactions on the Internet increasing by 70% from the same period last year.

Carl Clump, ReD chief executive says the figures continue to show that fraud is migrating towards CNP transactions where fraudsters can by-pass the need for a PIN number.

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