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Chip and PIN smart cards duped!
Written by Daniel   
Tuesday, 06 February 2007 07:31

Image U.K. researchers devise smart-card hack

By Tom Espiner
Special to CNET
Published: February 6, 2007, 6:49 AM PST

Two Cambridge researchers have created a scenario in which hackers can bypass the latest bank-card security measures.

Saar Drimer and Steven Murdoch, members of the Cambridge University Computer Laboratory, demonstrated last month how they could modify a supposedly tamper-proof chip-and-PIN payment terminal to play Tetris.

They have now extended the hack to demonstrate how they can compromise the system by relaying card information between a genuine card and a fake one.

Chip and PIN, a government-backed initiative introduced last year in England, is a security measure in which a customer must enter a four-digit code when they use a credit or debit card for face-to-face transactions. The measure replaces the magnetic strip with a chip and the use of a four-digit PIN number. The card is placed in a device that authenticates the chip, and then a PIN is entered. Chip and PIN uses the EMV standard for smart cards. Similar but incompatible EMV systems are in use in other countries as well.

The Cambridge researchers argue that the system is not as secure as the banking industry claims. More

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