Hacked

Banks Mum Over Credit Card Flaw: Because Fraud Is a Profitable Business?

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Short Bytes: A new flaw in the card transaction has been revealed by the German security experts. This flaw, capable of cloning the entire card and hacking the entire protocol, cannot be removed by just a mere software patch. But banks and card companies are not reacting to it. Know why?

So who is at bigger risk? Consumers or the banks? Eventually, who is going to earn more money from the plastic, banks or the customers? In the core of the whole talk, the question finally boils down to the fact that “Is fraud a profitable business for banks“?

Is it a way to convert black money into white money and ceasing up the surveillance by those who keep an eye over a gushing flow of money during the festival time of Christmas and New year.

Also read: How Criminals Hack Your Chip And Pin Card

Well, the world is not new to this business and as well as the tricks. A flaw in the payment transaction is also not new to all. But it happens mostly during festive times. A new of its kind flaw has been identified by the German security experts in the payment terminals. Using this flaw, a handsome amount of money can easily by stolen from anyone’s account.

Previous attacks exploit software bugs like you would have on your computer. Ones that can be fixed with a software update, “Now, what we’re attacking is the protocol itself. The devices work exactly as intended and are still vulnerable. So this is a risk that cannot easily be fixed with a patch.

– The German code-breaker Karsten Nohl of Security Research Labs in Berlin tells.

So, the system of money transaction works on hardware and software. This hardware and software are defined by a protocol. A protocol is like a rule book which explains how every step in a money transaction should behave and what should happen in the case of a transaction failure or protocol breach.

However, this time, it looks like the whole of the rule book defining the protocols has been compromised. Earlier, hackers used to sneak into a part of the software or hardware which used to repaired by the a software upgrade on the system but this time, since the entire protocol has been compromised so the entire system has to be overhauled.

Also read: How Do Cyber Criminals Steal Your Money?

The hack is simple. As long as the hacker is connected to the same wireless network, the hacker can easily compromise the entire system including cloning your entire card.

However, banks and cards companies are paying no heed to it. Is festive time a time for the banks to make fraud a profitable business for them? Well, that might be the case as well.

Here is the video explanation of card hacking:

So do you also think that fraud is a way of banks to make profitable business? Tell us in the comments below.

Also read: Explained: How Criminals Hack Your Chip And Pin Card

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