Bank Cards Protection
“Bank Cards” means all kinds of cards, issued by the banks to their clients and used for cashless transactions. They are debit, credit, virtual cards etc. There is hardly an adult Bulgarian citizen who doesn’t have at least one bank card. These cards are used for credits grants, pension payments; they give remote access to different kinds of accounts, etc. Through these cards the users perform different kinds of payments and withdraw cash. With the increased use of the bank cards the criminal actions against them increasing. „Last fall, two brothers from Bulgaria were charged in U.S. federal court in New York with using stolen bank account information to defraud two banks of more than $1 million.“ – that’s the beginning of the crime skimming description /data stealing from bank cards/ on the FBI USA website. That means the Bulgarian users are subjected to the utmost data theft risk and bank accounts withdraw by skimming.
In the latest issue of the magazine Professional we examined the skimming process, but let us repeat the main subject. The skimming is illegal copying of data from cashless payment cards in order to use them without the knowledge of the cardholders. For the purpose, the criminals install additional devices /skimmers/ on the cashless payment terminals. The most common devices record the magnetic stripеs data and the PIN code of the cardholder. Subsequently the criminals use that information to make transactions on behalf of the user, to shop and withdraw money from his account. The most common places for skimmers mounting are the ATMs and cashless payment terminals in the stores.
The banks issue three types of bank cards.
Cards with chip and magnetic stripе
Cards with magnetic stripe only
Cards with chip only
The contact chip implementation in the bank cards is newer technology aiming to increase their security. Chip skimming has been conducted in laboratory conditions, but up to now there is no real device able to conduct chip skimming in real conditions. That technology is considered as relatively secure. That’s why to increase the security, some of the banks begin issuing cards only with chip, without magnetic stripе. Such kind of card can’t be skimmed with the common skimmers and is really more secure. The problem is this card is not working all around the world. The ATMs saturation working simultaneously with chip and magnetic stripе is not evenly.
In Bulgaria the those kind of ATMs are the bigger percent – over 98 %, unto average for Europe 95 %, 73 % for Russia, 50 % for China, Asia and Australia, 53 % in the USA, 78 % in the Latin America and 76 % in Africa. That’s the reason why banks issue cards working with chip and magnetic stripе. If somebody has a card with chip only, it is possible not to be able to conduct transaction, thus the terminal which is using don’t support those kinds of cards. Taking into account the time for ATM replacing, it is hardly likely in the next 5-6 years the bank cards with chip and magnetic stripе to be suspended.
Fixing the data skimming as a serious problem, two Bulgarians decided to find solution; in result a protection stripе for bank cards was invented. Invented, because the stripе and the principle are protected in the Patent Office and they are globally unique. The stripе’s trade name is SkimProt.
The stripе working principle is elementary. SkimProt has to be glued over the magnetic stripе on the bank card. The special stripе composition, as well as the recorded codes on it, blocks the access to the data, written on the magnetic stripе of the bank card. At the same time give command to the ATM to receive the card and do the transaction using the chip data. If it is used on an ATM with skimmer mounted, the skimmer can’t read the magnetic stripе data, but reads the protection stripе data. Then even if the criminals have stolen the PIN code, they don’t have the enough data to conduct transaction and the bank card is protected. A protection stripе can be used for a long time, until breach appears or begin to unglue. Then the protection stripе has to be changed with a new one.
If the protection stripе user is abroad and get to ATM or terminal doesn’t working with chip, then there are two choices: unglue the protection stripе on his own risk or search for another terminal working with chip.
The protection stripе is designed to be used only on bank cards with magnetic stripе and contact chip.
The protection stripе doesn’t hinder using the bank card as access control card when opening doors in places for ATMs. The reliability of the records on the protection stripе is the same as the bank card magnetic stripе reliability, and there aren’t more special conditions to keep and use it /electromagnetic fields influence, X-rays, mechanical, etc./.
When using a SkimProt protected bank card for paying via POS terminal (on a shop pay desk), the card has to be placed on the chip recognizing input. Passing the card through the POS terminal magnetic stripe reader will not lead to transaction.
Wrong Right
To use SkimProt for bank card protection it is necessary to keep the following sequence:
1. Clean the bank card magnetic stripе surface from contaminations. It can be cleaned with soft cloth or cotton and water or 40 % solution of alcohol. For the purpose vodka works fine. It shouldn’t be cleaned with acetone or other strong solvents. This can destroy the magnetic stripе of the card.
2. Unglue the protection stripе from the pad where it is placed for selling and glue it over the magnetic stripе of the bank card.
3. Press the SkimProt firmly over the entire surface to fit well. While glue the protection stripе be careful the edges to fit exactly with the bank card edges, not to have protruding, sticking or unglued parts. The rounded edges of the protection stripе have to match the rounded corners of the bank card. If the protection stripе is attached incorrectly, the ATMs will not accept the bank card.
It is not recommended to use second time a protection stripе which has already been unglued from the bank card. It can cause problem with the ATM and bank card retention from the machine. In cases of unsticking, the protection stripе has to be changed with a new one.
With a properly sealed protection stripе, the card can be used as a normal bank card. Unfortunately in cases of data skimming and money withdraw from bank accounts, the burden of proofing unregulated transaction remains on behalf of the victim user. Very often the banks don’t recover the full stolen amount, but limit it to sum about 300 – 400 BGN. SkimProt is able to prevent financial losses, save troubles and time loss to the bank cards users.
Although the bank money are insured, according to non-official data, the banks in Bulgaria are losing from recovery of losses, result from skimming, between 100 000 and 650 000 BGN yearly for each bank. The amount varies depending on the bank type and size. According to preliminary estimates the widespread use of SkimProt can decrease these loses up to 50 – 60 %.
By SkimProt a serious question of the bank cards security is solved in an elegant and simple way.
It is invented by Dimitar Chobanov and Nikolay Tsaprev. The protection stripеs are produced and selling from Profisec Ltd and Information Security Ltd.
More information and purchase orders on www.profisec.bg, tel. 02/962 05 23.
Already on the market from October.
