Organized crime tampers with European card swipe devices

Customer data beamed overseas


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. ®


Other stories you might like

  • NASA installs a new and improved algorithm to better track near-Earth asteroids

    Nearly 20 year-old software used to protect humanity gets an upgrade

    NASA has upgraded its near-Earth asteroid monitoring algorithm to model hazardous space rocks more accurately after nearly two decades, it announced on Tuesday.

    The new system, dubbed Sentry-II, is more powerful than its predecessor, Sentry. Astronomers working at the space agency's Center for Near Earth Object Studies can now automatically calculate thermal influences that nudge an asteroid’s orbit, potentially sending it hurtling towards our home planet.

    The so-called Yarkovsky effect describes the subtle and gradual change of motion when asteroids are heated by the Sun’s light. When asteroids spin, one side of its surface exposed to the star gets heated. As it continues to rotate, the hot region enters shade and cools down. Infrared energy is radiated outwards; the photons carry momentum and impart a tiny thrust on the asteroid. Over long periods of time, these small kicks can change their paths and knock them out of their original orbit.

    Continue reading
  • Facebook slapped with an eyepopping $150B lawsuit for spreading hate speech against Rohingya refugees

    Lawsuit claims social media giant's algos helped Myanmar military crackdown on the Rohingya

    Meta was sued on Tuesday for a whopping $150 billion in a class-action lawsuit for allegedly amplifying hate speech and aiding the Myanmar military in the genocide of the Rohingya people.

    The case, led by an anonymous Rohingya refugee living in the US, accuses the entity formerly known as Facebook of inciting hatred and inflicting real harm on the predominantly Muslim group for years. Not only did the social media platform ignore hate speech posts, it's alleged that the service's algorithms actively promoted anti-Rohingya propaganda as hundreds of thousands of people fled from Myanmar to escape persecution.

    Facebook has already acknowledged its role in the campaign, which saw an estimated 25,000 people perish and 700,000 forced from the country. The lawsuit also comes after ex-employee and whistleblower Frances Haugen leaked internal documents demonstrating how its algorithms prioritized engagement over safety.

    Continue reading
  • Power management IC shortage holding cars, laptops, hostage

    Couple of cents-worth of kit causing big problems for the year to come

    The shortage of power management chips is worsening and holding back companies from building cars, PCs and items with batteries or an on-off switch, Trendforce said in a study this week.

    Power management ICs cost just a few cents, and are among cheap chips that include display driver and USB-C components that are in short supply. These chips are as important to PCs and other electronics as CPUs or memory.

    The demand for PMICs has gone through the roof with the emergence of electric cars and growing demand for PCs and consumer electronics during the past 20 plus months. Trendforce expects the prices will go up by 10 per cent to a six-year high of $0.23.

    Continue reading

Biting the hand that feeds IT © 1998–2021