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Nevertheless, despite these procedures in place, there has been amplified instances of the various types of credit card fraud, namely Intercept Fraud, Skimming, Site Cloning as well as Triangulation. This propelled an industry and government–led initiative in the UK to embark on the introduction of Chip and PIN card technology.

Based on the EMV standard (Euro pay, MasterCard, Visa) Chip and PIN technology was launched in the UK on February 14th 2006. This programme was introduced to combat credit and debit card fraud, and to provide an ideal way of validating the cardholder’s identity. By utilizing smart card technology a microchip is embedded with the customer’s information which includes their unique four digit PIN. For transactions to be accepted, the customer PIN entered must match the one encoded on the microchip. These steps are further explained below:

The card is inserted by the customer into the card reader.

The card reader would then prompt the user to insert their PIN.

A four-digit PIN is then entered by the customer. Once the reader accepts the PIN entered the transaction would be approved. Note the PIN entered is not displayed on the reader but rather represented by asterisks.

The customer is issued a receipt as confirmation of the transaction process.

This process removes the responsibility and accountability from the merchant to the customer for point of sale transactions. The card never leaves the customer’s hand and as such prevents skimming of one’s card information. One of the benefits of the Chip and PIN cards is that the Chip itself is encrypted with a range of security features, which the transaction processing system uses to identify the cardholder. These security features are said to be virtually impossible to replicate.

The terminals used for Chip and PIN transactions, use secure transmission technology to ensure the privacy of the cardholder’s data and can operate over a range of connectivity environments, such as wired, wireless and cellular networks. The PCI Security Standards Council also developed a framework of standards which is legally enforced through a merchant/service provider/card brand agreement. These include requirements that support the encryption of the cardholders’ account data and the point of sale terminal integration.

Figure 2: Outline of the process of a Chip and PIN transaction

The PIN entered replaces the request for signature as verification of the transaction. This is why the banking industry in the UK has campaigned for this technology, because signatures can be forged, however the PIN is unique to that person.

Although the United States is yet to convert to this technology, countries such as Japan, China, Canada, Mexico as well as the majority of the European Countries have all introduced Chip and PIN technology and it is gaining momentum in various other countries including Trinid本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。