Stealing? There’s an App for That! - Legal News


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Credit Card Applications » News » Legal » Stealing? There’s an App for That!

Stealing? There’s an App for That!

Stealing? There’s an App for That!
The content is accurate at the time of publication and is subject to change.

With all the excitement about contactless payments, and talk about wallets replacing cash and credit cards, it was only a matter of time before criminals figured out a way to take their thieving ways to the next level and join the contactless payment revolution.

Introducing “paycardreader” – the Android app that steals credit card numbers and expiration dates from credit cards with just the wave of a phone.

New Uses for NFC Technology

That phone would simply have to be equipped with near field communication (NFC) capability. Cryptography expert and Auckland University researcher Peter Gutmann showed how using this device, coupled with the “paycardreader” app, could easily skim numbers from credit cards.

He told SC Magazine – a securities industry publication – that the technology wasn’t useful for harvesting large amounts of data, but could appeal to small-scale criminals.

The app was developed by a German developer, Thomas Skora, who is a senior consultant for security consulting firm Integralis, and who said he developed the app “only for technical demonstration.” He launched it at the company’s Security World 2012 conference, which ran from June 19-20 in Stuttgart, Germany.

Misplaced Mistrust

Even if the app was developed strictly for demonstration and not by a criminal, thieves won’t miss an opportunity for a new method of stealing, and someone developing the technology to do so is certainly not a good sign. Judging by the comments on a news article about the “paycardreader” app, people are wary of contactless payment systems to begin with, and stories like this one only fuel their mistrust – the problem is, their mistrust is easily misplaced.

Consider this comment by freelance writer Renee Gerber: “People think this Google Wallet crap is such a “brilliant” idea. I wouldn’t for one second even consider having my credit or debit card info included on my phone,” writes Gerber. “What’s so difficult about removing a card from your wallet to swipe it through a card reader, anyway? It’s sad that there are people who are THAT lazy.”

In fact, there is no vulnerability for users of Google Wallet, MasterCard PayPass, or any other contactless payment system. The vulnerability is for people who carry their actual credit cards, which can be scanned using this app and have their data stolen.

So actually, using Google Wallet, Isis, or another such virtual payment system would protect users from having their information swiped by an app like “paycardreader,” or another one like it.

Wary of New Ways

Still, incidents like this underscore the fear that some people can feel about using new technology – particularly older people, who may cling to their cash and credit cards and be reluctant to pay for anything with a tap or a wave.

The truth is that credit cards are safer than ever, increasingly using more-secureEMV chips instead of magnetic strips – and even if your account is compromised, every major credit card on the market has a zero liability policy for fraudulent transactions. If someone steals your credit card information and goes on a shopping spree, you won’t be responsible for the charges.

A Moot Point

For now, this incident merely raises theoretical questions and concerns – the “paycardreader” app was available for download on the Google Play Store until Thursday afternoon, when it was pulled.It is no longer available – for now.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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