Chip & PIN rollout slower than expected and fraudsters continue to migrate to card not present transactions

Six months on, only 44% of adults have received all their replacement
Chip & PIN cards and 32% believe it won’t prevent card fraud
Card Not Present Fraud Attempts increase by 154%

London, 14 July 2005: New research into British consumer attitudes to Chip & PIN technology has revealed that six months after its introduction on 1 January 2005, less than half of British consumers have received all of their Chip & PIN cards.

The National Opinion Poll (NOP) survey conducted in June 2005, commissioned by Retail Decisions (ReD), the fuel card operator and a world leader in card fraud prevention and payment processing, is the first to continuously measure the public response to the introduction of Chip & PIN. The first study was conducted at the end of January 2005.

The survey reveals that only 44 per cent of all adults have been sent all their replacement chip cards from their card issuers. 26 per cent have had some of their cards replaced and 12 per cent have had none of them replaced at all. 37 per cent are still awaiting PINs for all their chip cards.

Furthermore, confidence in the new technology is decreasing. In January 2005 69 per cent of adults believed the technology would succeed in the fight against card fraud; whilst the current survey showed that number dropped by 13 per cent in just six months.

Even though confidence is declining, all age groups appear to have adopted the system with equal enthusiasm – 85 per cent of those aged over 65 said they found using Chip & PIN a good experience, with 85 per cent of 25-34 year olds agreeing. The most positive age group was 45-54 year olds with 91 per cent.

An internal analysis carried out by Retail Decisions shows attempted fraudulent card-not-present (CNP) transactions, in the telecommunications sector increase by 154% and on the internet by 70% from the same period last year. Transaction volume also rose in both sectors by 35% and 25% respectively.

ReD chief executive Carl Clump said: ‘It is remarkable that after six months so many people are still awaiting their replacement Chip & PIN cards. The 32% of people who believe that Chip & PIN won’t stop card fraud are fundamentally right. Our figures continue to show that fraud is migrating towards CNP transactions where fraudsters can by-pass the need for a PIN number. It is however pleasing to see the vast majority of people are finding the new technology a positive experience.’

To obtain full Chip & PIN survey results, from both January 2005 and June 2005, contact ReD.

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