Abstract
According to the official press release that accompanied its launch, chip and PIN is the biggest change to the way that payments are made since decimalisation. The aim of this new system of plastic card payment was to tackle stolen and counterfeit card fraud. However, recent figures published by the UK Card Payments Association show that counterfeit card fraud has increased dramatically since the introduction of chip and PIN and that, although stolen card fraud has decreased, the rise in other forms of fraud – noticeably those that do not rely upon knowledge of the card's PIN – indicates that fraudsters may have adapted new methods in order to circumvent the new system. This article draws upon interviews conducted with fraudsters in 2004, before the widespread adoption of chip and PIN, and again in 2009, to ascertain the extent to which they have evolved new strategies for committing fraud. In doing so, the article highlights the attitudes and beliefs held by fraudsters that shape their actions thus providing valuable information that could shape policy decisions aimed at the reduction of plastic card fraud in the future.
Similar content being viewed by others
References
Alalehto, T. (2003) Economic crime: Does personality matter? International Journal of Offender Therapy and Comparative Criminology 47 (3): 335–355.
APACS. (2009) Fraud the Facts 2009: The Definitive Overview of Payment Industry Fraud and Measures to Prevent It. London: APACS.
Beaver, K.M., Wright, J.P., DeLisi, M. and Vaughn, M.G. (2008) Desistance from delinquency: The marriage effect revisited and extended. Social Science Research 37 (3): 736–752.
Bernasco, W. and Nieuwbeerta, P. (2004) How do residential burglars select target areas? British Journal of Criminology 45 (3): 296–315.
Carroll, J. and Weaver, F. (1986) Shoplifters’ perceptions of crime opportunities: A process-tracing study. In: D.B. Cornish and V.G. Clarke (eds.) The Reasoning Criminal: Rational Choice Perspectives on Offending. New York: Springer-Verlag.
Copes, H. and Cherbonneau, M. (2006) The key to auto theft: Emerging methods of auto theft from the offenders’ perspective. British Journal of Criminology 46 (5): 917–934.
Copes, H. and Vieraitis, L. (2008) The risks, rewards and strategies of stealing identities. In: M. McNally and G. Newman (eds.) Perspectives on Identity Theft, Crime Prevention Studies. Vol. 23, Cullompton: Willan Publishing, pp. 87–110.
Cornish, D.B. and Clarke, V.G. (eds.) (1986) The Reasoning Criminal: Rational Choice Perspectives on Offending. New York: Springer-Verlag.
Cullen, F.T. and Link, B.G. (1980) Crime as an occupation: A new look. Criminology 18 (3): 399–410.
Dodds, N.J. (2000) The psychology of fraud. In: D. Canter and L.J. Alison (eds.) Profiling Property Crimes. Aldershot, UK: Ashgate Publishing Group.
Duffield, G. and Grabosky, P. (2001) The Psychology of Fraud Trends and Issues in Crime and Criminal Justice No. 199. Canberra, Australia: Australian Institute of Criminology.
Duffin, M., Keats, G. and Gill, M. (2006) Identity Theft in the UK: The Offender and Victim Perspective. Leicester, UK: Perpetuity Research and Consultancy International.
Felson, M. and Clarke, R. (1998) Opportunity Makes the Thief: Practical Theory for Crime Prevention. London: Home Office. Police Research Series Paper 98.
Finch, E. (forthcoming) The advantages of internet shopping: The fraudsters’ perspective, in preparation.
Finch, E. and Fafinski, S. (2009) Identity Burglary: A Study. London: Invenio Research.
Furnell, S. (2006) Safety in numbers? Early experiences in the age of chip and PIN. Computer Fraud and Security 4 (8): 4–7.
Hirschi, T. and Gottfredson, M.R. (1983) Age and the explanation of crime. American Journal of Sociology 89 (3): 552–584.
Hunter, P. (2004) Chip and PIN: Biggest UK retail project since decimalisation but not enough on its own to defeat card fraud. Computer Fraud and Security 2 (5): 4–5.
Jenkins, R. (2008) Social Identity. Abingdon, UK: Routledge.
Lemert, E.M. (1951) Social Pathology: A Systematic Approach to the Theory of Sociopathic Behaviour. New York: McGraw Hill.
Levi, M. (2008) Combating identity and other forms of payment fraud in the UK: An analytical history. In: M. McNally and G. Newman (eds.) Perspectives on Identity Theft, Crime Prevention Studies. Vol. 23, Cullompton: Willan Publishing, pp. 111–131.
Levi, M. and Handley, J. (1998) The Prevention of Plastic and Cheque Fraud Revisited. London: Home Office. Home Office Research Study No. 182.
Levi, M., Bissell, P. and Richardson, Y. (1991) The Prevention of Cheque and Credit Card Fraud. London: Home Office. Crime Prevention Unit Paper No. 26.
Maruna, S. (1999) Desistance and development: The psychosocial process of ‘going straight’. British Society of Criminology Conference Proceedings. Vol. 2, http://www.britsoccrim.org/volume2/003.pdf.
Maruna, S. (2001) Making Good: How Ex-Convicts Reform and Rebuild their Lives. Washingston DC: American Psychological Association.
Maruna, S. (2006) Desistance from crime. In: E. McLoughlin and J. Muncie (eds.) Sage Dictionary of Criminology, 2nd edn. London: Sage.
Mativat, F. and Tremblay, P. (1997) Counterfeiting credit cards: Displacement effects, suitable offenders and crime wave patterns. British Journal of Criminology 37 (2): 165–183.
Sampson, R.J. and Laub, J.H. (1993) Crime and deviance over the life course: The salience of adult social bonds. American Sociological Review 55 (5): 609–627.
Soothill, K., Francis, B. and Fligelstone, R. (2002) Patterns of Offending Behaviour: A New Approach Home Office Research Findings 171. London: Home Office.
Wall, D.S. (2007) Cybercrime: The Transformation of Crime in the Information Age. Cambridge: Polity Press.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Finch, E. Strategies of adaptation and diversification: The impact of chip and PIN technology on the activities of fraudsters. Secur J 24, 251–268 (2011). https://doi.org/10.1057/sj.2010.1
Published:
Issue Date:
DOI: https://doi.org/10.1057/sj.2010.1