Crime wave sparked by chip and PIN rollout

Although it's hoped the introduction of chip and PIN credit and bank cards will cut fraud and associated crime, the scammers are making a few bob while they can from the raft of new plastic being sent out.

Financial institutions need to have all their customers using chip and PIN cards by 1 January 2005 which means a flurry of new cards are being posted out across the country to replace the old chip-less variety.

The criminals have caught on and are intercepting the cards before they get to their rightful owners and then spending the cash, with the unlucky victims - often unaware a new card is on its way - only finding out when they get their statement and see an empty bank account, according to The Guardian.

London police stations are receiving three or four similar complaints a day, the paper said.

Around 130 million cards need to be replaced but three out of five people in the UK now have chip and PIN cards. While some retailers including Asda have already rolled out terminals with the technology, others, including Sainsbury's, don’t expect to be able to meet the 2005 deadline.