Data Storage Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Information for Data Storage Professionals
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Thursday, April 17th 
24/7/365 Network Uptime!
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Data Centers
Storage Solutions
Storage Networks
Data Storage Issues
Data Security
DST Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Tech Trends

Next-Generation Credit Cards Aren't Foolproof

Next-Generation Credit Cards Aren
January 27, 2014 9:35AM

Bookmark and Share
Chip-based smart cards are being touted as the answer to data breaches involving credit cards, such as the Target breach. But the cards are less effective against the widespread and growing threat of bogus online transactions that require only account information. EMV, as the technology is known, changes the game but won't prevent all fraud.

Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.

As the United States lumbers toward a new credit card technology to thwart data thieves like the ones who struck Target Corp., payment security experts say the new system is far from foolproof.

The chip-based smart cards, already in use in much of the world, make it much harder to produce counterfeit cards. But the cards are less effective against the widespread and growing threat of bogus online transactions that require only account information.

EMV, as the technology is known, changes the game but won't prevent all fraud.

"It's not a panacea," said Paul Tomasofsky, an electronic payments expert who heads Two Sparrows Consulting in Montvale, N.J.

EMV, which stands for Europay/MasterCard/Visa, is a fairly old approach rooted in experiments to deter fraud with microprocessor chips embedded in payment cards in France in the 1980s. It spread throughout Europe and became a global standard.

But because of the sheer size of the fragmented U.S. payments system, and the huge cost to convert, the United States is one of the last countries in the world to make the change.

There's general agreement that EMV alone would not have prevented the Target breach, in which thieves accessed data from as many as 110 million customer accounts. But EMV would have reduced the value of the information by making it almost impossible to clone the cards.

That's EMV's biggest boast, that it prevents counterfeit card fraud. "It does that spectacularly," said Jeff Hall, a security consultant in the Twin Cities for Overland, Kan.-based FishNet Security.

However, that's only part of the challenge. Online fraud that doesn't require the presence of an actual card now accounts for nearly half of all credit card fraud in the United States, according to Fair Isaac Corp., and studies show that adopting EMV drives crooks to this card-not-present fraud.

EMV Has a Vulnerability

EMV has a weakness at the point of sale. While data in the card's memory chip is encrypted when the card isn't in use, the data is momentarily vulnerable when customers pay.

Proponents of EMV say this isn't a big flaw because the chip spits out a unique, one-time-only security code to encrypt the data for transmission.

But critics say that if thieves compromise the card terminal or the register at just the right point, they can access the data before transmission, circumvent the one-time security code and get access to the information they want. The bulk of online merchants don't ask for the 3- or 4-digit security code on a card, Hall said. (continued...)

1  |  2  |  3  |  Next Page >

 

© 2014 under contract with NewsEdge. All rights reserved.

Tell Us What You Think
Comment:

Name:



 Tech Trends
1. Intel Reports Lower 1Q Net Income
2. Mt. Gox Is Headed for Liquidation
3. Google Grabs Droid-Maker
4. Tech Stocks: From Giddy to Glum
5. 1 in 5 Say They've Had Data Stolen




 Most Popular Articles
1. Intel Bets on Cloudera for Big Data Analytics
2. SAP HANA Data Warehouse App Gets Faster Analytics
3. Best of Interop 2014 Finalists Announced
4. Nearly Half of Enterprises Adopting Cloud, Study Finds
5. California DMV Investigates Possible Security Breach


 Related Topics  Latest News & Special Reports

  Malware Targets Facebook Users
  IBM Adds Disaster Recovery to SoftLayer
  How To Beat the Heartbleed Bug
  Google Proudly Scans Your Gmail
  VMware Rolls Out DR-as-a-Service

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 
Canadian Teen Arrested for Heartbleed Hack
One week after the OpenSSL Heartbleed vulnerability was unveiled, Canadian authorities have made the first arrest -- a London, Ontario teenager -- connected to exploiting the security hole.
 
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Google Releases Chrome Remote Desktop App for Android
You're out on a sales call, and use your Android mobile device to grab a file you have back at the office on your desktop. That's a bit easier now with Google's Chrome Remote Desktop app for Android.
 
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 

Navigation
Data Storage Today
Home/Top News | Data Centers | Storage Solutions | Storage Networks | Data Storage Issues | Data Security | DST Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Data Storage Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.