Square Mobile Gadget turns any iPhone, iPad or Android into point-of-sale credit card processor. Mobile payment system can be used to steal credit card information, without even having the physical credit card. Square works by converting credit card data into an audio file that is then transmitted to the credit card issuer for authorization. In theory, the team could buy stolen card data in underground online markets and start up a practically skill-free criminal shop in the U.S. Researchers: “Now you need less technical hardware to do it and no technical skills at all”
Source: https://thehackernews.com/2011/08/blackhat-conference-square-mobile.html