number, etc.), then the MagnePrint will still work. If there is still data that can be read on the card (i.e., their acct. Question: What happens if the magnetic strip is damaged or worn out? Will the customer still be able to make a purchase?Īnswer : Information on mag stripes degrade much faster than the underlying MagnePrint. Magnesa.Net is the fully operational MagnePrint exchange service, where banks and merchants can go to score their card. Patterson was kind enough to take time from his busy schedule and provide the following answers: Question: Is the MagnePrint system in production at this time?Īnswer : Yes, MagTek ships about 3 million MagnePrint read heads per year, and it has completed brand testing, and multi-year banking trials. I did have a few questions about implementing the MagnePrint technology.
It also appears incorporating the system would not require extensive hardware changes or significant costs, especially considering the huge losses incurred from counterfeit cards. The principle is surprisingly simple to understand. The following slide shows the difference between an original and copied magnetic strip: A flag will be raised when the Transaction MagnePrint is different from the Reference MagnePrint. Since each card's magnetic strip is unique, having someone skim your credit card is no longer a problem. If the transactions fails, what happens depends on the financial institution. If they agree, the transaction goes through. The validity of the Transaction MagnePrint is determined by comparing it to the customer's Reference MagnePrint. The Transaction MagnePrint and the purchase details are sent to the card issuer. Regarding the customer, every time they use the associated credit card, a Transaction MagnePrint is created. When a credit/debit card is issued to a customer, a Reference MagnePrint is created and stored on the card issuer's customer database. Knowing that, MagTek pairs the card's magnetic strip signature with the card user's personal data to create a one-of-a-kind digital identifier. Similar to DNA, the structure of every magnetic stripe is different and the differences are distinguishable. This is due to the manufacturing process. MagTek discovered that no two magnetic strips are identical. Patterson is CSO, has developed such a solution to combat the counterfeit-card problem. Most of you know, I am a big fan of "outside the box" solutions.
#MULTISWIPE FRAUD SOFTWARE#
Thankfully, obtaining the software and expertise to transfer information from the real card to a counterfeit one isn't quite that easy. Patterson commented that most gangs and organized criminals have several card printers, to keep up with the multitude of people who are skimming credit/debit cards for money. So, I looked and, sure enough (courtesy of eBay): One expert commented on how easy it is to buy card skimmers (readers) on eBay. As the video shows, the only hardware required is a computer, card reader, and magnetic strip card writer. This YouTube video will give you an idea of how simple it is to steal information embedded in a credit/debit card's magnetic strip. Expert after expert pointed out that using counterfeit cards or information obtained from credit/debit cards supports most illegal activity throughout the world. What surprised me was the scope of counterfeit card fraud. We all know about credit/debit card fraud. Organized crime has declared this fight, and it will take a unified effort to repel." With the banks losing over 4 billion dollars a year and growing rapidly, the industry is ready to fight back. "Completely eradicate counterfeit card fraud world-wide in the next 24 months.
It is recommended that you check your on-line accounts at least that often. Check: The average time between stealing credit card information and using it on-line has dropped from 10 days to three.If at all possible, make sure the last eight digits of the new credit/debit card's number are different.
Change: The bad guys have figured out the number-increment algorithm many banks use.Shield: When using your debit card, lean in and cover your PIN entry from every angle, the digits you protect equal the money in your account.Stare: It's no longer considered rude to stare at your card for the entire time it's in the hands of a clerk or waiter.It's your hard-earned money at stake, after all: These tips may seem obvious, but mentioning them again can't hurt. Then, I'd like to move on to a related subject that Mr. Patterson is well-known in the security world, so it was easy to pay attention to him. He was offering advice about credit/debit card behavior.
I came across a ComputerWorld article by Tom Patterson.