"The Dedicated Cheque and Plastic Crime Unit (DCPCU)... has raided a sophisticated counterfeit card factory in Birmingham. ... Equipment needed to steal card details and make counterfeit cards on a massive scale - including stolen chip and PIN terminals, card account numbers, a card reader/writer, computer software and fake magnetic stripe cards - was found in the premises. Early indications are that these criminals have been tampering with retailers’ chip and PIN terminals in order to steal card transaction data and PINs from these machines. With these details, criminals are able to create fake magnetic stripe cards that can be used fraudulently in countries that have yet to roll out chip and PIN."
See also commentary at The Register