Sunday, 16 November 2014

Electronic Pick Pocketing !

We are constantly reminded to look carefully at any ATM we are proposing to use to see if it has any unusual features.    Scammers are adept at stealing our PIN by attaching "skimmers " that blend in with the machine, but which record the vital information passing between our access card and the machine's "reader " and enable them to plunder our money.

The relentless march of new technology has produced the "tap and go "method of paying for goods. Both our credit and access cards have a wonderful new electronic chip embedded on their surface which can record a sale by simply passing close to the reader on a merchant's card terminal.  This is being promoted as the fast way to pay for items under a hundred dollars in value.

The world of electronics is very much a "cat and mouse "game.   The smart people who devise these systems are doing constant battle with the criminal element seeking the ways and means of circumventing the safeguards built into any new system - and it seems that the criminals are winning.

The latest weapon in electronic warfare is the "Radio Frequency Identification Device "( RFID ) which can be purchased on the net from various sources for about $150 - or assembled by a local bandit from items freely available from any electronics store.   It simply mimics the store readers - and collects the information on your card for transfer onto a bogus card which is then identical with the one you are using.

The alarming part is that the bandit does not have to intercept you making a transaction to steal your identity.   If you have your card in your wallet or purse, simply standing next to you enables the RFID to steal the information electronically - and you will be non the wiser that this has happened.  A bandit with a RFID moving through crowds in a busty shopping centre or on a peak services train would gain a wealth of opportunities - for plunder !

The banks have accepted the loss from illegally used card information when data banks are hacked or skimmers used on ATM's, but this is a totally new ball game.  No identification is required using "tap and go "because the item purchased is below a hundred dollars value.   Just imagine the bonanza a bandit could rack up by purchases that nobody would question ?    A packet of cigarettes here.  A restaurant meal there.   Perhaps a fancy haircut.   Good wine from the liquor store.  Filling the car with petrol.    Today - tap and go is synonymous with cash !

You would probably be unaware - until your next statement arrives, and then how do you prove to a bank that you did not make all those seemingly normal purchases ?   A clever bandit would probably rotate purchases through a selection of stolen identities - and many may not even notice an odd purchase of a few dollars - that they don't quite remember making ?  Some people are careless and rarely scrutinise their statements - item by item.

Counter measures are in the offing.     We may need to consider keeping our credit and access cards in a security wallet that provides a shield against electronic penetration, but then there will be the hazard of other people in the vicinity whenever we extract the card to make a purchase.

Some will solve this problem - by reverting to using that old fashioned medium - cash !

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