Credit card fraudsters have found a way to exploit flaws in the chip and pin system using stolen cards, it has been stated.
According to researchers at Cambridge University, the fraudsters are placing a "wedge" into the terminal to trick it into believing the correct security numbers have been entered.
The revelation raises major concerns about the chip and pin system because it renders the majority of UK banks vulnerable to credit card fraud.
Professor Ross Anderson, of Cambridge University's computer lab, revealed that thousands of credit cards have been stolen and used by crooks in the last five years.
He added: "Customers are often told that their pin was used and so it's their fault. Yet we've shown that it's easy to use a card without knowing the pin.
"This is not just a failure of bank technology. It's a failure of bank regulation."
Meanwhile, AA Financial Services recently announced the launch of its new credit card which includes zero per cent on balance transfers for 12 months.
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