The "plastic money" no matter in which form, ATM card, credit card, debit card, blah blah...all have a significant flaw. US issued cards have a fall back to using data from the magnetic stripe in cases where the cards does not support Chip and PIN. For the longest time card reader and writer that could write that information were not available to the public, at least in certain countries and that was already the flaw. Nowadays it is very easy to copy such cards or create them once you have the information that needs to go on the card.
Read the full article at: http://www.theregister.co.uk/2008/08/29/cloned_us_atm_cards_in_uk/
1SSA - Security consulting, training and products: http://www.1ssa.net/