Videos/Images

John Leyden at The Register reports that security researchers have demonstrated a gaping security hole in Chip and PIN credit card authorizations, which undermines trust in the technology as a means to verify retail purchases. Cambridge University security researchers have demonstrated how it might be possible to trick the card into thinking it’s doing a chip-and-signature transaction while the terminal thinks it’s authorized by chip-and-PIN. The flaw creates a means to make transactions that are “Verified by PIN” using a stolen (uncancelled) card without knowing the PIN number. Fraudsters would insert a “wedge” between the stolen card and terminal, tricking the terminal into believing that the PIN was correctly verified.

The Wall Street Journal reports that a federal jury in New Jersey has convicted two Florida men in a scheme to defraud banks and their account holders of millions of dollars through unauthorized debits of customers’ accounts. Prosecutors say the defendants pretended to operate a telemarketing business, using it as a front to try to withdraw funds from more than 100,000 bank accounts they were able to access through other conspirators.