Small inexpensive device can hack mag card readers

Computerworld published an article describing a tiny device that can wirelessly hack point of sale and other magnetic-stripe based systems by sending malicious keyboard commands using a design vulnerability in those systems.  Apparently a hotel room lock could be hacked within 18-30 minutes using the device. The device was inspired by "MagSpoof" which is a device that can [...]

By |2017-11-18T15:32:37-05:00August 3rd, 2016|data security, EMV|0 Comments

Visa releases updated EMV stats showing continued rapid adoption in U.S.

Visa announced a number of interesting statistics regarding the progress of EMV adoption in the U.S.: Nearly 327 million Visa chip cards have been issued, roughly 58% of them credit cards and the remainder debit/stored-value.   The U.S. has quickly become the largest chip card market globally, followed by Brazil at 141 million and the UK [...]

By |2017-11-18T15:32:38-05:00July 27th, 2016|EMV, Fraud, Visa|0 Comments

Reports: Counterfeit card fraud down as card-not-present and identify fraud spike

It is a long-established fact that fraudsters follow the path of least resistance.  Recent statistics back this up. CardNotPresent points out that according to the Card Fraud Control Benchmark Study from Auriemma Consulting Group, counterfeit card fraud dropped by 18% in the first quarter, largely due to the continuing rollout of EMV which requires multifactor authentication.  The [...]

Kroger is the latest merchant to sue over EMV signature authentication, joining Wal-Mart and Home Depot

In May, I published an article "Are Americans too dumb for Credit Card PINs?" pointing out the absurdity of U.S. card network rules requiring a merchant to accept a cardholder signature as authentication on an EMV-chip enabled card transaction, rather than requiring the customer to enter a PIN like 80+ other countries. By forcing merchants to [...]

By |2017-11-18T15:32:39-05:00June 28th, 2016|authentication, EMV, Home Depot, MasterCard, Visa, Walmart|0 Comments

MasterCard reports big decrease in fraud due to EMV adoption, but are merchants actually paying more fraud costs than before?

 MasterCard reported an impressive 27% year-over-year reduction in counterfeit card fraud at EMV chip-enabled merchants. That doesn't mean merchants are seeing the benefits of those reductions.   In May, I blogged about the sharp rise in chargebacks that merchants are experiencing due to the liability shift that occurred last October, whereby merchants can be charged back without [...]

By |2017-11-18T15:32:39-05:00June 1st, 2016|EMV, Liability Shift, MasterCard|0 Comments

Walmart sues Visa (again), wants to require use of PINs for debit transactions

Walmart has filed a lawsuit against Visa related to Visa's policy requiring merchants to allow cardholders to choose whether to enter a PIN for debit transactions, even if the customer uses a chip-enabled card. The problem?  Signature-based debit transactions are processed on Visa's debit network, often at a higher fee to the merchant than other network routing [...]

By |2017-11-18T15:32:40-05:00May 12th, 2016|debit cards, EMV, Visa, Walmart|0 Comments

Why do banks issue payment cards with magnetic stripes then penalize merchants for accepting them?

Effective last October, merchants who process a chip-enabled payment card by swiping the magnetic stripe instead of dipping the card in the chip reader are subject to full liability for fraudulent transactions.  So why are banks continuing to issue cards that contain both chips and magnetic stripes? This article from ATM Marketplace offers some thought-provoking insights about the [...]

By |2017-11-18T15:32:41-05:00May 6th, 2016|EMV, Liability Shift|2 Comments

Discover’s CEO endorses Chip and PIN authentication

Discover's Chairman and CEO David Nelms (full disclosure: I reported to Nelms  during my tenure as head of Discover's merchant network) has endorsed EMV Chip and PIN authentication.   Great leadership on Discover's part advocating for this common-sense authentication method already in wide use in Canada and the EU. The U.S. really missed the boat by [...]

By |2016-04-26T11:30:07-05:00April 26th, 2016|Discover, EMV|0 Comments

Visa introduces technology to speed up EMV transactions

One of the biggest EMV-related complaints from consumers and merchants alike has been the slowdown at the point of sale.   Those added seconds decrease customer satisfaction and slow down the checkout process, thereby creating significant added expense for high volume merchants. The updated technology from Visa, known as Quick Chip for EMV, speeds up [...]

By |2016-04-25T17:33:16-05:00April 25th, 2016|EMV, Visa|0 Comments

Massive Turkey data breach affects nearly half of its citizens, is nearly double the size of the 2015 U.S. OPM breach

Yesterday's report of a massive data breach involving nearly half of the citizens of Turkey is the latest in a series of hacks designed to make a political or philosophical point.  In this case, the hacker (or "hacktivist") apparently had a beef with the Turkish government, although financial gain may also have been an objective.  While the [...]

By |2017-11-18T15:32:41-05:00April 6th, 2016|data breach, data security, EMV, PCI-DSS|0 Comments