A fraud Bluetooth overlay skimmer that blocks credit card chip use #Security #Fraud

Krebs on Security posts an interesting credit card security hack – Bluetooth-enabled skimming devices placed over top of payment card terminals at several stores. Interestingly, these skimmers interfered with the terminal’s ability to read chip-based cards, forcing customers to swipe the stripe instead.

It includes a hidden PIN pad overlay that captures, stores and transmits via Bluetooth data from cards swiped through the machine, as well as PINs entered on the device.

Newer, chip-based payment cards are more costly and difficult for thieves to clone, but virtually all cards still store card data on a magnetic stripe on the back of the cards — mainly for reasons of backwards compatibility. This overlay skimmer included a physical component designed to block the payment terminal from reading the chip, forcing the customer to swipe the stripe instead of dip the chip.

Read more on the blog here.