Real or not, there is an evolving thread questioning the infallibility of chip and pin. We know that the card not present issue is a contributor, but this comment regarding ATM’s having difficulties is a new one to me, and will require further investigation.
We have to understand this dynamic, and both individual banks, and industry groups need to get on top of it.
MoneyExpert.com – Financial news article
“Chip and pin security is fallible,” a spokesman for credit payments association Apacs, which conducted the survey, told the Times. Recent research has suggested that cash machines are not always able to discern the difference between genuine cards and cards that have been cloned.
Relevance to Bankwatch:
Its been assumed as part of the business case for chip that fraud could be successfully managed down. So while enormous cost has gone into the introduction of chip, yet consumers remain sceptical.
Bankwatch 
“Recent research has suggested that cash machines are not always able to discern the difference between genuine cards and cards that have been cloned.”
The press reporting of this has been poor beyond belief, with every story riddled with inaccuracy. Just look at this one paragraph: the story has nothing to do with “cash machines” (because all transactions are online) and the reporter clearly doesn’t understand what a clone is.
Grrrr.
I am with you on the high level of disinformation on this topic. My concern is that customers will just hear the rhetoric, and react accordingly. I believe that banks can get more pro-active,, but getting on the side of the customer, and communicating the real story here.
My experience with our Smart Card people, is that they get very tied up in the technology, and its hard to sort out the real customer implications.
Double Grrrr