Master-fraudster Frank Abagnale ñ portrayed by Leonardo DiCaprio in the Hollywood biopic Catch me if you Can – has warned that Chip and Pin systems are not foolproof.
In fact, he predicts that certain features of Chip and Pin systems may actually make fraud easier as crooks explore new technology to compare credit card details.
Mr Abagnale successfully posed for five years as an airline pilot, doctor and lawyer, cashing $2.5 million (£1.3 million) of fake cheques.
After being caught and serving five years for fraud, he joined the FBI and has since advised companies on security, becoming one of the world’s leading fraud experts.
He warns that all technological steps forward provide only a short breathing space before fraudsters begin to match the new safeguards.
In particular, he believes that the unencrypted transmission from hand held card readers could easily be captured in shops or restaurants.
“Anyone sitting at another table with a laptop would be able to pick up the messages being sent to and from the card readers,” he told the Times.
“There is no foolproof system. Anything devised by a man or a woman can be defeated,” he added, predicting that chips would at some point begin to be cloned.
For the moment, however, Chip and Pin has achieved its purpose, with fraud falling from £504 million to £439 million last year.
© Adfero Ltd