I hear that they are finally, slowly moving to chip and pin since their losses to fraud are increasing.
One of my recently replaced cards is chip and signature, and I think that's what most US-issued smart cards are using. Security-wise, it's kind of a half measure, but at least it's a step forward from complete reliance on the magstripe.
At some point the threat of jail time for people responsible for certain actions is a necessity.
I agree that force is necessary, but I disagree that jailtime is always the ultimate expression of that force. So, I suppose thanks for forgetting what the focus of your argument was.
If you think the system is working, ask someone who's waiting for a prompt.