On 1/6/2016 6:49 AM, Cindy Hamilton wrote:
> On Wednesday, January 6, 2016 at 3:58:14 AM UTC-5, sf wrote:
>> On Tue, 5 Jan 2016 21:59:56 -0500, Ed Pawlowski > wrote:
>>
>>> The RFID chips are being phased out for security reasons. The new chip
>>> cards have to be inserted if the equipment is available, swiped in the
>>> meantime.
>>
>> I still don't understand how the new chipped cards are any safer than
>> the old style swipe.
>
> The transaction is encrypted with a single-use key, and decrypted
> on the other end. The old-style magnetic strips could be copied
> easily, and there was a whole cottage industry in vandalizing
> ATMs and standalone credit-card readers (like gas station pumps)
> and installing duplicators. The hapless citizen swipes his card,
> the information is read from the magnetic stripe, and the felon
> has a copy of the credit card, to use as he pleases.
>
I remember years ago there was a restaurant in Germantown, TN that
nearly went out of business due to credit card theft. I'm hazy on the
details now but apparently some crooks got a long-term (9 years?)
employee to use a portable card reader to swipe/scan the cards customers
handed to her when they were paying for their meals. IIRC all she got
out of the deal were some stupid coupons and, ultimately, jail time. I
think she did give up the names of the other people involved. The
restaurant really took a hit, all because of a few stupid criminal
minded people.

> The new system is much more complex; it'll probably take some
> time before it's cracked and new fraud arises.
>
> Cindy Hamilton
>
There will *always* be someone finding ways to crack new technology.

Jill