ATMs are the problem

For the bad guys Chip & PIN is a dream come true. As a bad guy I want cash. In the past I had to clone your card and use it to buy goods, and sell them for 10% of their value to get cash. Now I copy your card and PIN by one of the multitude of methods, stick in an ATM in somewhere far flung and get cold hard cash.

Simple solutions, either a mandatory different PIN for ATM use, make ATM use optional, or subject to a maximum 'one off' emergency withdrawal.

But then the banks couldn't charge the morons who do make cash withdrawals on a credit card.