Language Selection

English French German Italian Portuguese Spanish

Lax security enables ATM card fraud, report says

Filed under
Security

An unprecedented wave of Internet-based bank fraud has been enabled in part by banks that don't bother to check security codes on cash cards, according to a report released on Tuesday.

Roughly half of U.S. banks in recent years have stopped checking codes embedded in the magnetic stripe of ATM and debit cards, making it easier for online con artists to suck cash out of consumers' accounts, Gartner Inc. analyst Avivah Litan said.

"The only reason they don't check these things is because they forgot about it," Litan said. "Really, I'm furious."

Litan found that con artists took $2.75 billion in cash from bank accounts over the past 12 months, often by tricking consumers to reveal their bank-account numbers and passwords in a technique known as "phishing."

Banks usually cover consumer losses due to fraud.

About 70 percent of those losses could have been prevented if banks had verified magnetic-stripe information rather than relying only on account numbers and passwords known by consumers, Litan said.

But that would make it more difficult for customers to change their PIN numbers when they're worried about fraud, as they'd have to come into a branch office rather than simply picking up the phone or logging on to the bank's Web site, she said.

Another security code, the three-digit CVV code printed on the back of the card, can be easily guessed by fraud artists using an automated "brute force" attack, she said.

BANKS QUESTION ACCURACY OF REPORT

Full Story.

More in Tux Machines

Open-Source Radeon 2D Performance Is Better With Ubuntu 14.10

While we're most often looking at the OpenGL 3D performance of the Linux graphics drivers, in the tests currently being done of Ubuntu 14.04 LTS vs. Ubuntu 14.10 are also a number of 2D graphics benchmarks. In the article today are our 2D benchmarks between Ubuntu 14.04.1 and Ubuntu 14.10 for various AMD Radeon graphics cards and it shows off significant performance improvements. Read more

Today in Techrights

Today's articles: Links outline:

KDE With Theoretical Client-Side Decorations, Windows 10 Influence

KDE contributor and graphics designer Ken Vermette has penned an interesting series of KDE "What if..." articles where he talks about (and has some visual mock-ups) about what KDE might look like with client-side decorations along and separately if KDE were to use Windows 10 design components. Read more Also: What if… Plasma Used Launchers from Other Systems & Enviornments? (Part 1) What if… KDE Used Windows 10 Design Components?

Pondering FOSS foundations

In the case of the Document Foundation, the LibreOffice project needed an independent, solid and meritocratic entity dedicated to support it. In other terms, the OpenOffice.org community wanted to be its own boss and stop relying on corporate – or even third party – good will. If you attend the Community Track on the 31st you will be able to learn more about the Document Foundation and the other entities, but my message here is that while there is no silver bullet in these matters, forcing a community be hosted or to bend to a software vendor never works. It bends if it wants to; it goes whereever it wishes to go. In the case of the Document Foundation, independence and community rule prevailed over convenience; today the results do not need to be proven anymore. But it does not mean we hold the truth more than anybody else: we just ensured the community was in charge. Read more