Dr. Avnish Jolly:According to a recent report by the Associated Press, USA hackers were able to break into Citibank ATMs located in 7-Elevens and mine users PINs and the fraud ring is alleged to have stolen more than $2 million between October and March in USA. While there are strict industry standards for protecting customers’ PINs, it appears not all ATM operators are putting enough protections in place. The report said that the perpetrators were able to nab PINs while the ATM was communicating with the backend system that processes transactions. Though the 7-Eleven ATMs are Citibank branded, the bank doesn’t own any of them, the machines were purchased from Cartronics.
In late 2006 Cardtronics launched its own in-house transaction processing service, but more than half of the 7-Eleven/Citibank ATM transactions are still processed by yet another company Fiserv. While Wired, the first place to report the story, says the FBI blames a Citibank-owned server for the PIN breach, Citibank says a “third party” is responsible for processing 7-Eleven ATM transactions. While Fiserv told Wired it was not responsible for the breach, Cartronics has yet to respond to the story.
These details show that all fraud crimes will be a thing of past if banks make signature and PIN systems reliable as proposed.
Fraud crimes will continue to grow until the government and banks exploit KEY and PIN system described on website http://www.xwave.co.uk which will make signature and PIN systems reliable to deter fraudsters from getting tempted to misuse our stolen personal and card details.
Key and PIN system will deter virtually all types of fraud crimes including those Chip and PIN, data protection and biometric ID card systems will fail to deter.
KEY and PIN system could be treated like international ID card since it will personalise signature and PIN to the right individual in any country in the world.
We hope that the banks and government will exploit proposed system before it is too late to stop a fraud boom.