Unfortunately chip and pin is not as secure as the industry wants you to believe. --There have been several examples of where people have modified card terminals to allow the chip and pin information to be intercepted and used elsewhere.
Any links? All the breaches I've seen so far have been either to fool the user to fall back to magstripe (after having them enter their PIN), or to fake the display of the amount you're charging.
IIRC there was one problem where the encryption used between the card and the bank was bad or the card's chip still had its write pins exposed but I think that was solved by replacing the cards with newer ones.
