Feeds

Organized crime tampers with European card swipe devices

Customer data beamed overseas

Using blade systems to cut costs and sharpen efficiencies

Hundreds of card swipers used by retail stores across Europe are believed to have been tampered by organized crime syndicates in China and Pakistan, according to US National Counterintelligence Executive Joel Brenner.

Brenner told The Daily Telegraph that criminals have doctored chip and PIN machines either during manufacturing in China or shortly after leaving the production line in order to send shopper credit card account details overseas. The devices were then expertly resealed and exported to Britain, Ireland, the Netherlands, Denmark, and Belgium.

"Previously only a nation state's intelligence service would have been capable of pulling off this type of operation," Brenner told the publication. "It's scary."

Hundreds of devices have been copying credit and debit card details over the past nine months and sending the data by way of mobile phone networks to tech-savvy criminals in Lahore, Pakistan, The Telegraph reports.

MasterCard International has alerted stores in affected areas and determined doctored devices can most easily be revealed by virtue of weighing an extra three to four ounces due to the additional parts they contain. MasterCard first uncovered the plot at the start of the year after detecting suspicious charges to British and other European accounts.

The scam is believed to have resulted in the loss of tens of millions of pounds by criminals creating cloned cards, making phone or internet transactions, or withdrawing cash from the account. The Telegraph reports the thieves usually wait at least two months before using the stolen data in order to make it harder for investigators to determine what happened.

Brenner said the scam should motivate card swipe device makers to not only do more testing, but guard their supply chain in the same way jewelry suppliers do. ®

Boost IT visibility and business value

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.