Friday, October 10, 2008

UK: Chip and Pin Scam 'Has Netted Millions From British Shoppers'

Henry Samuel writes on the

Dr Joel Brenner, the US National Counterintelligence Executive, warned that hundreds of chip and pin machines in stores and supermarkets across Europe have been tampered with to allow details of shoppers' credit card accounts to be relayed to overseas fraudsters.

These details are then used to make cash withdrawals or siphon off money from card holders' accounts in what is one of the largest scams of its kind.

In an exclusive interview with The Daily Telegraph, America's counterintelligence chief said: "Previously only a nation state's intelligence service would have been capable of pulling off this type of operation. It's scary."

An organised crime syndicate is suspected of having tampered with the chip and pin machines, either during the manufacturing process at a factory in China, or shortly after they came off the production line.

In what is known as a "supply chain attack", criminals managed to bypass security measures and doctor the devices before they were dispatched from the factories where they were made.

More here.


At Tue Oct 14, 04:11:00 PM PDT, Blogger Ben Wright said...

Fergie: A quote in the Wall Street Journal says the Chip and PIN hackers are performing at a level of sophistication that rivals foreign intelligence services. The implication: Payment card data security requires much, much more than just forcing merchants to lock down data and comply with the PCI (payment card industry data security standard). Card data security is on par with national security issues. Card security requires wholesale rethinking of the credit card system. The Federal Trade Commission misunderstands the magnitude of the problem. The FTC is locked in an old-fashioned belief that data in-security is due to stupid merchants (like TJX) treating consumers (and their privacy) "unfairly" by failing to secure their systems. We need fresh thinking and better leadership on this issue from the FTC. --Ben


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