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Someone already made a chip card skimmer

By Claes Bell · Bankrate.com
Thursday, August 13, 2015
Posted: 6 am ET

banking-blog-someone-already-made-a chip-card-skimmer

That didn't take long. An ATM security firm recovered a device from a Diebold ATM in Mexico designed to record data exchanged between the chip in a debit card and the chip reader in an ATM, according to a report by Brian Krebs of the Krebs on Security blog.

They're calling it a "shimming" device because it actually fits within the ATM slot itself, placing a super thin data reader between where the chip in a debit card would rest and the chip reader.

Why you should care

Chip debit cards have been touted as an upgrade over easily counterfeited magnetic-stripe cards, and it's true that it would probably be next to impossible for a criminal to mint a counterfeit chip card using data stolen in this way.

But it's possible a thief could take the information captured from the device and use it to print a magnetic-stripe card that could then be used at lower-security ATMs, Krebs writes. While there are some safeguards in place to avoid this exact kind of attack, involving the difference between the Card Verification Value, or CVV, number encoded in a magnetic stripe and the one encoded on a chip, some banks may not yet take advantage of that security feature.

For some cool pictures of the device, check out Krebs' blog.

What do you think? Do you ever worry you'll fall victim to ATM skimming attacks? Have you ever?

1 more thing

This latest bit of news offers a big lesson: Crooks will go to great lengths to try to steal, which means consumers need to be vigilant. That includes routinely checking your credit report to ensure no one is opening up new lines in your name. Check your report for free at myBankrate.

Follow me on Twitter: @claesbell.

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9 Comments
Edna Wakeham
October 22, 2015 at 12:55 pm

I carry my card/cards in a metal box that closes tightly. Can the new chip be read through the metal, and/or do I need to buy new items advertised to protect my cards from being illegally scanned?

Once again we have a new "foolproof" method of security which the scammers have the equipment to steal the information from, even before we receive the new cards. I hate "PROGRESS" like this.

curtis
September 28, 2015 at 9:13 pm

Has CPI Card Group partnered with another company for distribution or other services?

Annie Bates
August 17, 2015 at 8:13 am

Who are the top 5 credit card companies that have or will have the EMV chip this year? or maybe 2016