Britons just not ready for chip and PIN

Though the 1 January, 2005, deadline for the UK's switchover to chip-and-PIN technology is fast approaching, the British public appears unprepared for the change.

More than half of cardholders (60 per cent) have little or no knowledge of chip and PIN, and 56 per cent are concerned the technology will increase the risk of their PIN being stolen, according to new research commissioned by IT consulting firm Detica.

Chip and PIN is a scheme for credit and debit cards whereby cardholders are required to enter a PIN into a keypad instead of signing when making purchases at shops or in restaurants. The aim is to cut down on credit card fraud.

David Porter, head of security and risk for Detica, said that the hope for making sure shops aren't chaotic this holiday season is to educate shoppers. Though banks need to take part, the onus of informing the public will probably fall on retailers because it's in shops that most consumers will first come in contact with the technology.

Porter said: "Retailers have to play their part in educating consumers - whether it's fair or not - because they're seen as the enforcers of it."

Seventy per cent of the 1,002 individuals surveyed say they're confident chip and PIN will offer greater protection against theft and fraud than signatures, indicating those who have been educated are largely positive about the scheme.

The education provided by retailers should include everything from signs in stores to TV and radio ads explaining not only how chip and PIN works but also how to best manage PINs.

On average people have five PINs and about half of cardholders use the same number for one or all, according to the survey.

Shoppers must learn to change PINs periodically, to avoid obvious numbers (such as one's birthday or '1234'), to not use the same PIN for all cards and to be very careful where they write down PINs, said Porter.

Though admitting nothing will wipe out credit card fraud altogether, Porter believes the chip-and-PIN technology is secure. However, he's concerned by "the softer issues", such as PIN management, because "with security, humans are the weakest link".

While only 55 per cent of those surveyed have received their chip-and-PIN cards, Porter is confident shops and banks will make the January deadline of putting in place the new technology. "It's unclear, though, whether they'll make the deadline of educating people about PINs," he said.