Chip and pin broken
Feb 27th, 2010 by Jesper Kråkhede
Yet a costly infrastructure has been shattered leaving an insecurity of payment cards in its wake. Chip and pin has been shown to have a flaw making it possible to withdraw money from a stolen card without knowing the pin. According to the paper it would explain phantom withdrawals between when a card is stolen until the cancellation of the card. Money that the banks until now have refused to reimburse.
The reaction from the payment industry is that the risk is quite low as the cost for such advanced tools is high and that there is a need for high technical skills. If it something former fraud have told us it is that if there is money to be found gears for making such scams will be readily available within a few months, instructions on websites and finally videos on youtube will emerge.
It would be interesting to see if there will be a rise of stolen terminals from small stores during the following months.