CouchSurfer, that's not what I meant. I mean if someone steals your card and makes purchases with it, there are signatures to compare so that you can prove it was not you. With a Chip and PIN system, there is no signature to compare, and the onus is now on you to prove that you did not give out your PIN to whomever stole your card, and that you are not liable for their purchases.
Even with the card reader they don't have your pin so they can't make a purchase
with your card. IF they figured out a way, to "make" it work with a different pin, the
encryption will have changed and they will be able to discern that it is not your card
in any investigation after you make a denial of purchase.
The pin is stored at the banks (or cc companies) server and is then referenced
with your chip. Just because someone can get some information from your chip
doesn't make it the end of the world.
Worrying about someone with a portable chip reader scanning your pants (I
guaranty there's a limit to how far it reads (probably in the inches) is pretty
paranoid IMO. I'd be more worried about someone working at the gas station
or clothing shop with a reader attached to the swiping machine (where most
of this kind of theft occurs).
If you're that worried about it, and you need a card, get a prepaid card. No info
to loose and even if someone does steal it, they get away with a limited amount.
"i surf because, i"m always a better person when i come in"-Andy Irons