Sunday, November 29, 2015

That Big Security Fix for Credit Cards Won’t Stop Fraud

Actual fraud has gone up where ever these new chips have been introduced. That does not mean do not use them, for one it is the law, or will be. The premise was good, I could buy magnetic stripe card readers for 5 dollars on the internet, and a card magnetic stripe encoder for another 15 dollars. About 4 years ago, when Europe really doubled down on the new chip card, I did a little investigation, since I knew all these little mom and pop shops all over Europe had to be still conducting business. Well guess what for 50 dollars US, I could buy a chip reader and could buy empty chip cards to encode the new card into on to, so I was back in business, if that had been my business. Then I was chastised by a number of folks actually in the business, that on the dark web, I could buy apps for my smart phone that could read the new chips while they are still in your wallet or purse. In fact a whole new business started up in selling blocking devices for your credit cards. That was years ago, now days you do not have to go the dark web to buy the app, in fact ways to hack apps you can get from your credit company are all over the place, allowing you to capture credit card numbers from other folks while sitting at a table near the person using his chip credit card out of the expensive blocker he just bought. OK oK, just think of this, the number you still type into your computer to buy things on line still works, so if I can get your credit card number off your new chip card in your wallet, or any other way I used to do it. and watch you type in your 4 digit pin into any device, say the new chip reader, or RF listen to you enter it into your smart phone or tablet, then I am off to the races. And none of this does anything to stop the number one credit card fraud machine, the folks hacking into Target, or some other local store and stealing yours and a few million or maybe just a few hundred cards, which has not slowed down at all. And these hackers, have your credit card data on line to sell to other bad guys with in min, in fact seconds. The price of the card number are measured in how many times they have sold that card number already and how many hours old the stolen number is. My main credit card company usually reports unusual usage with in an hour, and often flags unusual purchases with in minuets of sale. But if a Target ( I hate to pick on them, they really have revamped their security) has your card in it's own database, then any buys there are usually good to go. And lets not even go to online purchases. Have a merry merry Christmas, really :)
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1 comment:

  1. Over the last few years, card issuers have spent between $200 million and $800 million to distribute new debit and credit cards to accountholders, while large retailers like Target, Home Depot and Walmart have spent more than $8 billion to install new card readers capable of reading the chips.
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