[seer]

Well here in europe it didn't happen all at once. It was a gradual rolling of chip based cards, atms and terminals. There was a non-insignificant amount of time where some atms / pos terminals would reject your card because you/it didn't have the right technology.

But ultimately I think its the people themselves that demand more security from their banks. E.g. Bank one introduces chip based cards and more people choose that bank because they want more security. Then gradually some atms start to be "chip only", and banks start to see the chipless ones get all the skimmers and accelerate their replacement to lower costs which forces business to atart getting more pos terminals with chips to meet the demand of people with cards that have mag strip disabled.

Having more security seems to be what everybody wants and benefits from, its just that europe has smaller players which accelerates market forces in that direction, and meybe because european consumers just want more security in general.

[wildrhythms]

How do banks in Europe verify identity? i.e. I call the bank and claim to be "Margaret Thatcher," what's the next step?

Here in the U.S. the next step is usually asking for the social security number. I called VISA/Citi to re-activate my card after traveling and they asked for the associated phone number with my account. Neither of these are especially secure, in my opinion.

[kbart]

Can't talk about the whole Europe, but in my country there aren't many banking services provided via phone and banks keep decreasing their count insisting on their clients to use mobile app, online banking or ATM. I believe you can't even get available balance in my current bank via phone.

[heavenlyblue]

Local UK bank after separation from Lloyds (now called TSB) asks for 3 random letters of your security answer which is also used as part of online banking authentication. Additionally, your address and previous transactions if you're calling re. fraud.

[chiefalchemist]

I think people would demand more security if they really understood how venerable the technology was. But no one beats that drum. So consumer remain ignorant and just keep shopping.