TL;DR
Chipped cards without a magnetic stripe, or with a deliberately blanked stripe, are generally not vulnerable to the attacks that rely on reading data from the stripe. However, they aren’t completely immune and other attack vectors exist.
Understanding the Attack
The attacks we’re discussing involve intercepting card data as it’s read from the magnetic stripe during a transaction. This typically happens when a card is swiped through a compromised point-of-sale (POS) terminal or skimmed using a hidden device.
Why Stripe-less Cards Are Safer
- No Stripe, No Data: If a card doesn’t have a magnetic stripe, there’s no data to steal via traditional skimming.
- Blanked Stripes Offer Protection: Deliberately blanking the stripe (degaussing it) removes any previously stored information, preventing skimming attacks targeting the stripe.
However… It’s Not a Perfect Solution
While removing or disabling the magnetic stripe significantly reduces risk, it doesn’t eliminate all potential vulnerabilities. Here’s what you need to know:
1. EMV Chip Attacks
- Relay Attacks: Attackers can attempt to intercept and relay communication between the card chip and the POS terminal. This is more complex than skimming but possible.
- Shimming: Shims are thin devices inserted into the card reader slot that read data directly from the chip as it’s being used. These attacks bypass EMV security features.
These attacks don’t rely on the magnetic stripe at all.
2. Online Transactions
- Card-Not-Present Fraud: Stripe-less cards are still vulnerable to online fraud where card details (number, expiry date, CVV) are stolen through phishing, malware, or data breaches.
The chip doesn’t provide security for online purchases.
3. Compromised POS Systems
- Memory Scraping: Attackers can install malware on a POS system to capture card data directly from the terminal’s memory after it has been encrypted by the chip reader. This is independent of the stripe.
This attack targets the processing stage, not the initial read.
Protecting Yourself
- Monitor Your Accounts: Regularly check your bank statements and credit reports for any unauthorized transactions.
- Use Strong Passwords: Protect your online accounts with strong, unique passwords.
- Be Careful Online: Be wary of phishing emails and suspicious websites.
- Contact Your Bank: If you suspect fraud, immediately contact your bank or card issuer.
Technical Considerations (for IT Professionals)
If you manage POS systems:
- Regular Security Audits: Conduct regular security audits to identify and address vulnerabilities.
- PCI DSS Compliance: Ensure your systems are compliant with the Payment Card Industry Data Security Standard (PCI DSS).
- Endpoint Protection: Implement robust endpoint protection solutions to detect and prevent malware.