This both is and isn't news. In the security world, we knew that replacing credit card signatures with chip and PIN created new vulnerabilities. In this paper (see also the press release and FAQ), researchers demonstrated some pretty basic attacks against the system -- one using a paper clip, a needle, and a small recording device. This BBC article is a good summary of the research.
And also, there's also this leaked chip and PIN report from APACS, the UK trade association that has been pushing chip and PIN.
