[ISN] Petrol firm suspends chip-and-pin

[InfoSec News]

http://news.bbc.co.uk/1/hi/england/4980190.stm

BBC News
6 May 2006

Petrol giant Shell has suspended chip-and-pin payments in 600 UK
petrol stations after more than £1m was siphoned out of customers'
accounts.

Eight people, including one from Guildford, Surrey, and another from
Portsmouth, Hants, have been arrested in connection with the fraud
inquiry.

The Association of Payment Clearing Services (Apacs) said the fraud
related to just one petrol chain.

Shell said it hoped to reintroduce chip-and-pin as soon as possible.


Plastic crime

The fraud is being investigated by the Metropolitan Police cheque and
plastic crime unit.

"These Pin pads are supposed to be tamper resistant, they are supposed
to shut down, so that has obviously failed," said Apacs spokeswoman
Sandra Quinn.

She said Apacs was confident the problem was specific to Shell and not
a systemic issue.

A Shell spokeswoman said: "Shell's chip-and-pin solution is fully
accredited and complies with all relevant industry standards.

"We have temporarily suspended chip-and-pin availability in our UK
company-owned service stations.

"This is a precautionary measure to protect the security of our
customers' transactions.

"You can still pay for your fuel, goods or services with your card by
swipe and signature.

"We will reintroduce chip-and-pin as soon as it is possible, following
consultation with the terminal manufacturer, card companies and the
relevant authorities."

Shell has nearly 1,000 outlets in the UK, 400 of which are run by
franchisees who will continue to use chip-and-pin.