Across the pond they have a Chip and Pin system, which is kinda like a debit card.  The BBC (http://www.bbc.co.uk/blogs/newsnight/susanwatts/2010/02/new_flaws_in_chip_and_pin_syst.html) is reporting on a new man in the middle attack which involves a stolen card in a reader, then another card is placed in line with the real vendors reader.  The mitm card is used for pin and authentication, where the transaction takes place using the stolen card.  The hardware setup fits in a backpack, but the researchers are working on a smaller version.

The paper is located here, http://www.cl.cam.ac.uk/research/security/banking/nopin/oakland10chipbroken.pdf

Ops!