Chip enabled credit cards were supposed to be the newest technology to prevent hackings and mass identity theft. But according to the latest Black Hat cybersecurity conference in Las Vegas, that may not be true. Two security researchers showed Thursday that criminals could easily take control of a shop owner’s credit card terminals and steal that information.
Even if the shop uses the latest chip and PIN machines, a hacker can easily steal the information just by inserting a smart card with malware into the machine. Credit cards with chips were supposed to be very safe, because they encrypt your PIN as you type it, instead of storing your credit card’s data. Although many U.S. shops do not currently have this technology, they were supposed to switch to chip and PIN by the end of 2015. This was supposed to stop major hacks like the ones that recently hit Target, Michaels, and Neiman Marcus.
However, with these new findings from MWR Labs, it may not be the best solution to stop hackings. According to their researchers, the machine gathers the information during the day. Then, a hacker can come with a card which sucks the data out of the machine. Hacking the terminals is virtually undetectable. Vendors and researchers are currently working to fix the issue to prevent these major hackings.
Source: CNN Money
