Every Little Helps Credit Card Fraud?

I was thinking about this issue after Tesco failed to deliver my home
delivery on Wednesday - a failed delivery which Tesco maintain was
delivered! The issue I have is with the way they handle potential card
fraud. If you ever use Tesco online to order groceries you will notice
that Tesco never ask for your billing address. I realised this most
recently when I used my card to pay via my housemates Tesco account.

Any
responsible retailer online has security measures in place to prevent
card fraud. I'm not talking about the encryption, but rather the level
of information you have to enter about the card. Tesco asks for the
name on card, the card number, the issue number, the expiry date, and
the security code; all information present on the face of a card. If
this transaction was in a High Street store there would be the added
security of a signature check (or Chip and Pin). On the internet that's
currently impossible. Which is why, all other online stores I know of
will ask for the billing address for that card. In most cases it would
be the same as the delivery address. But in my case it is different as
I live away from home at uni halls.

I intially thought the whole
billing address and delivery address was all just pointless data to
enter until I entered the wrong details on another site. It refused my
payment and flagged the card for fraud. Pretty drastic perhaps, but at
least I knew it was there for security (and the bank did release the
card once they rang me and I confirmed everything). Anyway, sorry about
the diversion. My point is, Tesco online don't ask for billing address.
There isn't that added security which I think is damn well required.

Consider
the possibility someone found a credit or debit card on the floor (or
how about someone who quickly notes the details off it say in a
restaurant?). Consider they go out to try and use it. They can't go
down the high street, they'll want a pin number. And you can't normally
use it online because it'll ask for a billing address. Both the PIN
number and billing address you wouldn't know. But, go onto Tesco.com
and you can use it. You don't need to know anything other than the
details that are on the card.

Now, my question is, what is the
legal stance of this? Isn't this somewhat irresponsible of Tesco as a
retailer. What do you think Trading Standards or whoever would say
about this? Something like this could hit Tesco pretty hard I think.
What's your take on all this?
I anticipate your response, JC.

TESCO-COMPLAINT EDIT:
Thank you for highlighting this issue. It is not the first time that
Tesco's lapse attitude to credit card security has been exposed - see
our "news and links" section for this entry: "Tesco helps credit card theft" via self scan terminals without chip and pin.
Continued in the comments section...