Chip and PIN are supposed to help protect us all from credit card fraud. Cambridge researchers, Steven Murdoch and Saar Drimer, have found a number of ways that the criminally-minded could crack it – and extract your account number and PIN and all the details needed to create a cloned card. This is more likely to happen at shady stores where the retail associates is in charge of the store.
Check out the Google Video showing a demonstration of the same. [Reminds me of the FRAUD that had rocked 5-Star Hotels in India, where the Steward would swipe the details of credit card on his cell phone sized instrument and later use the data to go shopping at our expense].