Monday, September 12, 2011

Modern Card-Skimming Tactics Detailed in Washington Arrests - American Banker Article

Modern Card-Skimming Tactics Detailed in Washington Arrests - American Banker Article

New techniques are being developed everyday. The new smart contact less card that is being touted as far more secure is being used quite a bit in Europe, and is starting to be used in the US more and more. The ability to read these cards from some small distance is part of the security of them, they do not need to be inserted into slot of the ATM, just passed in front of the sensor. Unfortunately these devices can be read from bogus machines from a distance as well, and the codes stolen much like the magnetic stripe on the old cards. After that the same technique using the video camera will still allow the bad guys to get the PIN number.

If reports are to be believed, the fraud level has actually risen in Europe with the new cards, and preliminary reports are finding fraud in the areas of the US that they are used as well. Bad guys are learning all the time, and since the card readers for the new smart cards must be able to read the new cards, buying the new readers, and software is apparently not a problem.

Worse yet are the folks making and buying portable readers they can carry with them to put close to peoples wallets and purses as the walk, stand, sit in public areas. The only get the card info, but in some buying sprees that is all that is needed, and at least one bank has decided to do away with pin numbers since the new card is so secure.

I am sure the Banks will find a way to stop these bad guys just as I am sure the bad guys will also work very hard on the new fixes.

Rich

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