(From the article)
His team found that several devices were not, in fact, made to the security specifications they claimed to follow. With a minimum of effort, he said they could wiretap the devices and extract the PIN during a sale.
Scammers installed their evil wares into card readers before they were even delievered to merchants.
In order to get European merchants to switch, the banks promised merchants that they would be responsible for fraudulent charges. With swipe cards, a fraudulent charge is simply reversed to the merchant.
The victims of fraud were frequently blamed by the banks, who accused them of exposing their PINs somehow. In other cases, the banks simply changed their minds and reversed charges to the merchants. In extreme cases, banks and credit card companies declined to press charges against known scammers, apparently out of embarrassment.
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