U.S. House hearing examined security in the aftermath of malware attacks against point-of-sale systems at Target Corp. and Neiman Marcus. Executives testified that their breaches occurred when data from the magnetic stripes on credit and debit cards was collected in the clear at the point of sale before being encrypted as payment transactions were processed. Experts say true end-to-end encryption – which would mean card data is never exposed during a POS transaction – does not yet exist. Even if companies are adhering to mandated industry security practices, they can still be breached.”]
Source: https://www.databreachtoday.com/breach-hearings-how-did-security-fail-a-6484