Whose reputation is at stake? The real ATM fraud
Card scams for that is all this is, highlights why a low level of security on four digit ATM access privileges remain necessary.
All is not what it seems, for example, the consequence of biometrics 'fingerprinting' may only serve to elevate harms (severed fingers) in the same way that secure technology protecting cars has lead to gun enabled highjackings. Why break the code when a gun to the head works.
So it is with 'brute force' at guesing 10,000 PIN's. A microchip will do that in microseconds, but why go to the trouble when you can just video the fingers, the investment is low, the dividend assured. Crime always takes the path of least resistance, cost and inconveniance.
Nearly all banks 'hash the pin' (make it a secret) from a selected list of proprietary techniques. Most choose IBM's. It is weak.
The problem with ATM cards IS where the risk is borne.
Ask yourself this question, Why is the consumer liability on a credit card $50.00 and on debit, someone's entire liquid assets.? The only protection is who steals your handbag/wallet is guilty of 'theft' and the punishment is, well; the criminal deterrence. The clearance rate on handbag theft is?
The cost of identity theft is reputation! For banks it's become about their reputation, a PR issue...
Predictably they announce 'new chip technology' is being trialed now....
First my dog, now my ID... um, where's the conversation about this?
It is time to demand that banks work to our security on our terms. The asset's 'digital rights' belong to us, the consumer.
I was many years ago, responsible for the Burrough's network surrounding the worlds first true 'online' ATM capable banking system, operated by the Southland Savings bank.And we didnt have a drug problem, nor chips in our dogs.
Thirty years ago it was currency independent... global and real-time.
It later became the bones of TrustBank.
After an offshore takeover (WestPak), the code was expended citing incompatible/transition costs. At the time overtures of USA influence I could characterise as 'if you dont bank with us, your banking against us.' surrounded highly profitable interbank transactions. Have no illusions, 'drug revenue laundering ' made good fodder when arguing for USA's transaction transparency.
In a wired 'IP' world, that suite of code, operating private fungible transactions for 'everything that moves, anywhere' would have made the net worth of TradeMe's intellectual property - look like pocket change.Pity really, Southland's unconstrained bank gave consumer real service, the control [protection] of their identity, information and reputation you could write a cheque on.
Follow the money.....
-- Blair Anderson
[longtime] Antipodean Member of the Harvard Club based, Electronic Commerce Society of Boston.50 Wainoni Road.
Christchurch, New Zealand 8006