Retailers may refuse sale in all signature credit or debit card purchases from Valentine's Day next year to shoppers who do not know their personal identity numbers.
The Chip and PIN programme announced it will phase out the option to sign for transactions after half-year results show the new system helped cut losses to fraud by nearly a third in the six months to June of this year.
The £36 million reduction, down from £126.6 million in the first half of 2004 to £89.9 million in the same period this year, proves the technology's success in cutting criminal behaviour, the Programme's organisers claim.
Counterfeit and lost and stolen card fraud have dropped by 31% and 27%, respectively, and more than nine in 10 consumers now have a chip and PIN card.
She added that the PIN technology successfully verifies debit card transactions at a rate of 97% and credit card purchases at 89%.
"Our experience in shops shows that most people have taken to chip and PIN like ducks to water," said Paul Smith, director of the British Retail Consortium (BRC).
"They find it simple, quick and convenient. Now is the time to encourage those not using PIN to get ready to do so by 14 February next year so that we can drive even more fraud out of our shops."
The Valentine's Day deadline will be promoted by an awareness campaign to remind those consumers not using their PIN to start doing so.
Signature sales will still be possible, however, after the deadline in shops that are not yet using Chip and PIN and for cards that have not yet been upgraded to the technology.
