From: "Tim" 
Newsgroups: uk.finance uk.legal
Subject: Re: Chip and pin fraud.
Date: Thu, 11 Aug 2005 14:25:04 +0000 (UTC)

> "Tim" wrote:
> >  (1)  If the foreign use is "online" to the UK issuer, they
> > could reject the transaction as "chip required", couldn't they?
>
"Graham Murray" wrote
> If the foreign ATM or swipe terminal does not support
> the chip then the cloner could make a direct copy, which
> would only be usable abroad, which would claim that there
> should be a chip but the foreign system would not be able
> to verify the presence/validity of the (non-existent) chip.

... and so the foreign bank/retailer would then be liable for any fraud (not
the UK bank or the account holder) ... ?