Cardholders are being warned to be vigilant when checking their account balances after Lloyds TSB said that credit card fraud was being increasingly driven overseas by the success of chip and pin.

The bank said there had been an increase in the use of cloned UK cards to withdraw cash from ATMs in countries as varied as France and Sri Lanka, where the less secure authorisation method of magnetic strip reading is used.

In one case, a British woman’s account was drained of £3,000 after 19 seperate withdrawals from a cash machine in Holland.

The bank said that it couldn’t yet measure the true scale of the problem, but confirmed that it would refund the accounts of any customers affected, and has said its security systems have been upgraded in response to the issue.

This entry was posted on Tuesday, May 16th, 2006 at 3:47 pm and is filed under Card Fraud. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.