Security News > 2021 > February > Checkout Skimmers Powered by Chip Cards

Virtually all payment card terminals at self-checkout lanes now accept cards with a chip to be inserted into the machine.

Most modern chip-based cards are significantly thinner than the average payment card was just a few years ago, but the design specifications for these terminals state that they must be able to allow the use of older, taller cards - such as those that still include embossing.

Virtually all chip-based cards still have much of the same data that's stored in the chip encoded on a magnetic stripe on the back of the card.

Thieves are adept at exploiting weaknesses in how certain financial institutions have implemented the technology to sidestep key chip card security features and effectively create usable, counterfeit cards.

Many people believe that skimmers are mainly a problem in the United States, where some ATMs still do not require more secure chip-based cards that are far more expensive and difficult for thieves to clone.

What's more, many chip-based cards issued by American and European banks alike still have cardholder data encoded on a magnetic stripe in addition to the chip.

News URL

https://krebsonsecurity.com/2021/02/checkout-skimmers-powered-by-chip-cards/