Chip-based credit and debit cards are designed to make it infeasible for skimming devices or malware to clone your card when you pay for something by dipping the chip instead of swiping the stripe. But a recent series of malware attacks on U.S.-based merchants suggest thieves are exploiting weaknesses in how certain financial institutions have implemented the technology to sidestep key chip card security features and effectively create usable, counterfeit cards.
Several readers have called attention to warnings coming out of Canada about a supposed new form of ATM skimming called “shimming.” Shimming attacks are not new (KrebsOnSecurity first wrote about them in August 2015), but they are likely to become more common as a greater number of banks in the United States shift to issuing chip-based cards. Here’s a brief primer on shimming attacks, and why they succeed.
Fraud experts in Mexico have discovered an unusual ATM skimming device that can be inserted into the mouth of the cash machine’s card acceptance slot and used to read data directly off of chip-enabled credit or debit cards.