I've not heard that phrase before but it's a good one.
Bruce Schneier links to an article about the supposedly more secure "Chip and Pin" credit/debit card system that was recently introduced to the UK can be circumvented by cloning the magnetic strip (i.e. the "old" technology) and then using it at a location that knows nothing about the new system (in this case an ATM in India).
I've heard stories of it happening in the UK too where a merchant hasn't upgraded their systems - or where banks haven't upgraded their ATMs. Indeed, I wish I could find one story I read that described how the presence of a chip on a card is encoded on the magnetic strip... so you can get even an upgraded ATM to fallback to the older magnetic strip technology simply by changing that bit on the strip.