Shell said the suspension of chip and pin was a temporary measure
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Petrol giant Shell has suspended chip-and-pin payments in 600 UK petrol stations after more than £1m was siphoned out of customers' accounts.
Eight people, including one from Guildford, Surrey, and another from Portsmouth, Hants, have been arrested in connection with the fraud inquiry.
The Association of Payment Clearing Services (Apacs) said the fraud related to just one petrol chain.
Shell said it hoped to reintroduce chip-and-pin as soon as possible.
Plastic crime
The fraud is being investigated by the Metropolitan Police cheque and plastic crime unit.
"These Pin pads are supposed to be tamper resistant, they are supposed to shut down, so that has obviously failed," said Apacs spokeswoman Sandra Quinn.
She said Apacs was confident the problem was specific to Shell and not a systemic issue.
A Shell spokeswoman said: "Shell's chip-and-pin solution is fully accredited and complies with all relevant industry standards.
"We have temporarily suspended chip-and-pin availability in our UK company-owned service stations.
"This is a precautionary measure to protect the security of our customers' transactions.
"You can still pay for your fuel, goods or services with your card by swipe and signature.
"We will reintroduce chip-and-pin as soon as it is possible, following consultation with the terminal manufacturer, card companies and the relevant authorities."
Shell has nearly 1,000 outlets in the UK, 400 of which are run by franchisees who will continue to use chip-and-pin.
BP is also looking into card fraud at petrol stations in Worcestershire but it is not known if this is connected to chip-and-pin.
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