Easy Targets

In today’s world, clever devices and smart technology come in many forms. The same technology that makes our lives a lot more efficient can also create havoc and be used for the wrong reasons. We are seen more cutting-edge, complex, and clever gadgets that have challenged the law and our ethics.

There is no end to the ingenuity of the criminal hacker. They’ve figured out how to hack debit card PINS. Debit cards are linked directly to our checking accounts, which makes them easy targets for criminal hackers. At an ATM or cash register, most debit card users are unaware of what occurs when they swipe their cards and enter their pin numbers. A quick process takes place and we get to walk away with our new purchase, simply by swiping a card and tapping a few keys. The money magically disappears from our account and we celebrate by eating the Twinkie we just bought.

The convenience of debit cards has led to global popularity that vastly exceeds that of handwritten checks, all the way into 3rd world countries. We’ve known for some time that low-tech skimming at ATMs and gas pumps have been a point of compromise. Now Wired reports that the transaction itself puts your PIN number at risk. Academics discovered this flaw years ago, but didn’t think it would be possible to execute in the field. Criminal hackers, however, have come up with the ultimate attack, stealing large amounts of encrypted and unencrypted debit card and pin numbers. And they have figured a way to crack the encryption codes.

The compromise occurs in a device called a hardware security module (HSM), which sits on bank networks. PIN numbers pass through this device on their way to the card issuer. The module is tamper-resistant and provides a secure environment for encryption and decryption for PINs and card numbers. Criminal hackers are accessing HSMs and tricking them into providing the decrypting data. They are installing malware called “memory scrapers,” which capture the unencrypted data and use the hacked system to store it.

People should check your statements very closely and look for unauthorized activity. Read their statements online biweekly as opposed to relying solely on your monthly paper statement, and refute unauthorized charges immediately

To make their criminals’ jobs harder, Interac is now rolling out a next generation of debit cards that contain an embedded microchip. If you’ve a new credit or debit card, you’ve already seen the microchip technology. The chip acts as a mini computer, storing and processing information. The data on the chip is extremely difficult to copy or change, minimizing the chance of fraud. A debit card transaction conducted with the microchip technology is significantly more secure than a transaction completed with a swipe of the magnetic stripe.