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Security gaping holes: Any bank card data easy to get even inside terminal


The German researchers found, any card data may be easily stolen right off the terminals designed to protect it. This risk can not be easily fixed. Not only customers but shops can find this technology turned against them. Meanwhile banks are acknoledged of this problem but are reluctant to react to it.


Cambridge University – Professor Anderson has also published weakness in Banking.  The Banks *threatened* him and his Phd students for exposing the flaws.  He replied basically telling the banks to take a hike.

He is one of Britain’s foremost experts on cyber security, a man who has spent 30 years following the development of first telephone, and then online, banking. The professor of security engineering at the University of Cambridge’s computer laboratory has witnessed the mass take up of online banking, and more recently the explosion in fraudulent activity.

So when Ross Anderson says he has never banked online – and has no plans to do so primarily because the customers carry the risks of fraud – the rest of us might want to take notice.

Until recently it would have been unthinkable to suggest consumers should consider ditching online banking, so much a part of the financial world has it become. But online bank fraud is the UK’s fastest growing area of crime – doubling from £60m in 2014 to an expected total beyond £130m this year – and the losses to consumers have in some cases been of the life-changing order of £90,000 each.

Crucially, and contrary to what you will find in the banks’ marketing materials, if you fall victim to an online fraud the chances are you will never see your money again.

Last month RBS revealed that between January and September this year almost 5,000 customers fell victim to scams – at a cost of more than £25m. The bank says the average loss was £13,000, and warned that 70% of its customers who are scammed do not get a single penny back.

“I’ve seen far too many scams, and I’ve tracked the evolution of the banks’ bad attitude to customer complaints,” Anderson says. “Since the late 1990s the move to phone banking and then the internet has led to contract terms and conditions along the lines of ‘You agree to be liable for any transactions which, according to our records, were made using your password, whether you actually made them or not’. Basically, the banks used the move online as an opportunity to dump the fraud risk on the customer.”

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