Saturday, April 01, 2006

Chip and PIN, What a saving....

Computing is reporting that UK Banks have saved £60m in the last year due to the introduction of Chip and PIN. I've heard reports that UK fraud is approximately £500m per year and it will cost approximately £1bn to introduce the technology. Therefore my calculations suggest it should take about 15 years to recoup the cost of introducing Chip and PIN. To be fair, the actual saving should be slightly more since Chip and PIN was only made mandatory from 14th February, but with online and CNP (Cardholder Not Present) fraud increasing 21 percent from £151m to £183m during the same period it seems unlikely the costs will be recouped within a decade!

I'm fairly sure fraudsters will think of something weird and wonderfully new to take our money during this period of time, so my question is - is it worth it?

Personally I don't like the idea of typing my private number in front of the person hurriedly pushing his way to the front of the checkouts at Morrisons. So I don't think it was worth it!

No comments: