Soon everybody will have another set of numbers to remember. In a move to thwart widespread credit card fraud, banks will start introducing a “chip-and-pin” system to replace the traditional magnetic security strip.

Chip-and-pin cards rely on a personal number, usually four digits, rather than a signature, and are thought to be harder to defraud. All banks will be required to introduce the new technology, according to a statement from the Central Bank yesterday, although no timetable was given.

“This is in line with global industry trends intended to reduce the risk of debit and credit card fraud. The introduction of such technology has proved to be extremely successful in other parts of the world in reducing card fraud, particularly in Europe,” the Central Bank said.

Chip-and-pin technology has been used widely in Europe for many years, and was introduced in Britain in 2004. There is still some debate about its effectiveness, although according to a British government website, counterfeit and fraud were reduced by nearly £60 million (Dh320.4m) the year after its introduction. Last week, a senior Dubai police officer told The National that its introduction could prevent increasingly sophisticated credit card fraud.

“In 2006, US$700m (Dh2.57 billion) in losses were produced in credit fraud and that has put a huge burden on companies,” said Major Gen Khamis al Mazeina, the deputy chief of Dubai Police.

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