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Chip & PIN Terminal Playing Tetris

Posted by Hemos on Mon Jan 08, 2007 11:05 AM
from the the-joy-of-subversion dept.
Fearful Bank Customer writes "When British banks introduced the Chip-and-Pin smartcard-based debit and credit card system three years ago, they assured the public it was impervious to fraud. However, the EMV protocol it's based on requires customers to type their bank account pin number into store terminals in order to make any purchase. Security researchers at the University of Cambridge Computer Laboratory derided the system as insecure at the time, as it gave access to customer's bank account pin numbers to every store they bought from. Despite these objections, the system was deployed, so researchers Steven Murdoch and Saar Drimer recently modified a straight-off-e-bay chip-and-pin terminal to play Tetris, with a video on YouTube, demonstrating that devices are neither tamper-resistant nor tamper-evident, and that even students with a spare weekend can take control of them. The banks are claiming that this can be reproduced only "in the laboratory" but seem to have missed the point: if customers have to type their bank account pin into every device they see, then the bad guys can capture both critical card information *and* the pin number for the bank account, leaving customers even more vulnerable than they were under the old system."
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[+] Chip-and-Pin Vulnerable To Subtle Trickery 64 comments
An anonymous reader writes "Cambridge University researchers, in an investigation for BBC Television's Watchdog programme, have demonstrated a man-in-the-middle attack for the chip-and-pin credit card security system used throughout the UK and Europe. In the attack, the card is inserted into a card-reader that has been tampered with, and the information transmitted in real-time to an accomplice who uses a specially modified card to make a higher-value purchase elsewhere. The modified card-reader shows only the expected amount, but the larger amount is deducted from the victim's bank account. It would not be easy to use this method in practice because the two transactions must be made simultaneously. The same team recently demonstrated a hacked chip-and-pin terminal playing Tetris."
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  • Those who would exchange security for convinience deserve Tetris!
    • Re: (Score:3, Informative)

      Misquote indeed. Especially considering Franklin wasn't actually the source of that nugget of wisdom.

      http://en.wikiquote.org/wiki/Benjamin_Franklin
  • by Shoten (260439) on Monday January 08 2007, @11:11AM (#17509160)
    They got it to play tetris by replacing the majority of the electronics inside it. It's not exactly like they got the actual terminal to play tetris...it's more like "They put a tetris game console inside the empty terminal shell, and used the terminal's keypad and screen for control and display." It'd be like skinning a copy of Windows 95 to look like Xwindows, and then saying "Look at all the vulnerabilities I found in linux!"
    • by crossword.bob (918209) on Monday January 08 2007, @11:16AM (#17509208)
      But if someone can put custom electronics in what is supposed to be a tamper-proof shell, people will blindly insert their cards and type their PINs. The issue is not one of terminal software security, but of hardware integrity.
      • Re: (Score:2, Insightful)

        Tell you what. Why don't you go away and build me a 100% tamper proof Chip & PIN which cannot be easily replicated (eg. with casting resin and alginate), doesn't cost a small fortune to produce and provides some easy, immediately visible means of differentiating it from any possible fakes? Then persuade Tescos (and anyone else with similar systems) to use that rather than their existing system (which is "all cards, regardless of type, are swiped through the card reader on the checkout"), because if yo
        • The point being... (Score:5, Interesting)

          by Junta (36770) on Monday January 08 2007, @11:52AM (#17509718)
          That the whole point of this is to demonstrate that if you use the merchant's hardware to enter any personal data, it is *impossible* to be tamper-proof or tamper-evident for sure.

          My vision has always been a smart device with a crypto engine, that provides it's own display and entry. It would plug into POS equipment, and tell the POS equipment at first, only enough to identify itself and tell the POS which financial institution to contact.

          The financial institution would receive from the merchant the account holders ID number and some info about the transaction (i.e. the amount, maybe an interval if a service, maybe a tolerance if a repeating service charge). The financial institute would look up the customer's public encryption key, and use it to encrypt all that data together with a challenge string, and send that back to merchant.

          Merchant relays the encrypted package to the customer smart device. The device then (maybe using a passphrase to decode private key like a pin, but not linked to anything outside the device) uses the private key to decode the data, and display to user what the financial institution thinks the merchant is asking for with a confirmation. If user confirms details, the decrypted challenge is sent to POS and the merchant relays it to Financial institute.

          Financial institute upon receipt of a correctly decoded challenge, authorizes the transaction, and gives the merchant an affirmative response with an authorization code that is *only* valid for that specific transaction.

          Here, the financial institute *only* has the customer private key, so ripping off that database won't give anyone access to the account. The merchant knows they are getting the money, but isn't left with anything they *could* use to get more money than the customer authorizes directly. The only place that has the private key is the customers smart card, which should *never* allow it to be transferred out (probably should be generated by the card and only the public part uploaded when issued). If using a passphrase for storage of the private key, it even has resistance to physical theft.

          For bonus points (actually, I would pretty much demand it), have it somehow able to plug into usb ports for online transactions. Of course, online, the customer and financial institute can talk directly, simplifying some of it, but the model need not be changed much for online stuff). Again, the PC would never get the private key, so you would have to use the device.

          I would *pay* an upfront charge to help cover the cost of the device in exchange for such security. If it's half-assed and uses merchant display/entry, or shares the private key *ever* theoretically, I wouldn't.
          • Here, the financial institute *only* has the customer private key
            I meant public key, whoops....
          • While your idea seems very well thought out, it still wouldn't gaurantee it couldn't be a dummy terminal that's designed to collect swipe data and pin codes.

            My thoughts are that after you swipe your card, the terminal should give YOU a PIN number that should match a PIN that the bank sends you with your card. At this point, once you verify that it is indeed legit, you provide your counterpart PIN.

            And since it doesn't have to be entered, it could be a word, or with LCDs, even an image.

            Hell, for that matter,
        • You've really missed the point here - as explained in the article, in the summary and in the post that you're replying to. The researchers pointed out when Chip'n'pin was introduced that what you've described is impossible. What you've posted is exactly their gripe with the system. The only difference is that they've sensibly suggested that this is a reason that we shouldn't use an authentication system where we give away information, whereas you've concluded that we're just stuffed and people should quit b
    • by pdawson (89236) on Monday January 08 2007, @11:28AM (#17509402)
      The point is if they can do that, bypassing the 'tamperproof' systems, they can open a unit in the field and piggyback a chip in to record account# and pins with the with the user being none the wiser.
      • The real point is that the system by design encourages (or in fact requires) users to give up their bank pin in order to make purchases. Let's hope they don't actually try to band-aid the problem by making tamper-evident casings.

        Question: what role does the 'chip' have? Does it have any way of securely authenticating the transaction with the merchant, and thus in some way verifying that the merchant trusts the terminal? The article summary suggests that the same old information is on the mag strip.
        • The Interac system in Canada has been running since at least 1997 and involves swiping your normal bank card at the store and entering your pin on a keypad for via-telephone authentication of the purchase.

          There are some fraud problems. Mostly, people hook up card cloners to ATMs and have a small camera set up to record pin numbers. Then again, they also do that in the US, as well.

          If entering your PIN at the store is a significant vulnerability, it's one that has existed here for 10 years without significant
          • Chip cards are impossible* to clone in that way, and if someone clones the strip part of it under EMV then the PIN is not used and the transaction is flagged for attention as a possible fraud.

            (*yeah, ok, very difficult!)
        • by Nursie (632944) on Monday January 08 2007, @11:57AM (#17509810) Homepage
          Sorry for the pompous post heading, but the first part is true, I wrote a large part of Tesco's system including about half of the EMV processing component. It's a customised version of what was the world's first integrated EMV system (ie card reader + PC + store level auth servers + central connection to VISAnet, LINK etc).

          Whether you should listen to me or not is another matter.

          The chip controls the transaction. That's how it goes. The chip decides if it can trust the terminal or the bank based on cryptographic signing operations. The terminal is verified by a process in which it concatenates various pieces of data, performs a crypto op on them and presents the result to the card. The card compares this to its own result (depending on the card it either has one precalculated and uses the same one each time (low security) or does the same calculation itself on a set of data including some session data (better security)).
          PIN is encrypted as soon as it is entered and should never leave the device it's entered on in plaintext form, it is presented to the card as a cryptogram for validation.
          When a transactioon is presented to the bank for authorisation it is presented with yet another cryptogram so that the bank can validate the card. The response also comes in the form of a cryptogram so that the card can validate the bank.

          However, I'll agree, all this is pretty useless if someone can get inside the terminal and intercept the PIN at hardware level. Other than that and the looking-over-shoulder social security hole problem, EMV's pretty bullet proof. Your PIN doesn't ever even get to the PC that's running the transaction.

          If you want to know more then the actual standards are available at EMVco [emvco.com], but they're the nearest thing to legalese I've ever encountered as a software Dev. I'm out of the payments game now, but my knowledge should still be pretty relevant, I hope.
          • If that's the case, then isn't the PIN alone rather useless to a crooked merchant? From what I understand, the chip on the card is supposed to be difficult or impossible to duplicate (especially in a tiny form factor card reader device). So even if you have the PIN, it's of no use to you unless you either mug the person for their card or hope they've used it elsewhere.
    • They got it to play tetris by replacing the majority of the electronics inside it.

      That really can't be mentioned enough. Link to The Register's article [theregister.co.uk]

      It'd be like skinning a copy of Windows 95 to look like Xwindows, and then saying "Look at all the vulnerabilities I found in linux!"

      Except that a better analogy is those card skimmer devices that get stuck on ATMs that can record the card stripes and button presses. While the blame is misplaced ("oh noes! teh phish n chipz n pinz r haxx0r3d!"), it's still important as a reminder that sometimes you don't need to hack the security, if simply wearing a sheep's skin is good enough to get your wolf into the flock.

    • Very good analogy. I'm most interested in what terminal they hax0red, and I can't really tell. I'm pretty certain of this though: any program that would be able to read the key presses will not authorize transactions - ever. If you can replace the electronics with something that can read the keypad, then you'll lose the benefit of the (tamper-resistant) electronics that actually encrypt the PIN block. Show me a proof-of-concept that can actually record keypresses while still authorizing transactions, then I
  • by swillden (191260) * <shawn-ds@willden.org> on Monday January 08 2007, @11:14AM (#17509184) Homepage Journal

    The potential security problem here is caused by the use of the same PIN for two purposes. You know how you should never use the same password for multiple security-critical systems? Well, that's exactly what some of the UK banks did.

    See, EMV security is designed around the assumption that only the card and cardholder know the card PIN. The bank doesn't know it. The merchant terminals see it, but it has no value without the card. In particular, it should be of no use with the bank machine/ATM network.

    How then, do you use a bank machine? Well, ideally, you insert your card, enter your PIN to unlock the card, and then the card performs a cryptographic authentication with the bank over the ATM network to identify and authenticate you so you can proceed to perform your transaction. But that requires the ATMs and network to be updated to support the chip card and to use the new authentication protocol.

    The other method, of course, is just to use an account number and a PIN, just as you always have, but that PIN *must* be known by the bank's systems, which leads to the banks' dilemma when deploying the system. Their options were:

    1. Make customers remember two PINs for the same account, a card PIN and a "bank machine PIN". This is good for security, but bad for customer acceptance.
    2. Upgrade the ATMs and network to do the card-based cryptograhic authentication. Good for security, but, in the short term very bad for customer acceptance, because it means that the cards can't be used with non-UK ATMs that don't implement the new technology.
    3. Use a "shared" PIN, ensuring that every time a cardholder changes either the card PIN or the bank PIN, the other gets updated to match. This is called "PIN synchronization" and is actually not all that cheap to do either, but it's the only option that means customers only have to remember one PIN and can use their card in ATMs around the world. It's bad for security, though.

    So, the banks mostly took option 3. I think some of them allow customers to request that their card and ATM PINs be "decoupled".

    In theory, this means a malicious merchant can modify their PIN pad to capture the PINs and account numbers, and can then use the information to drain the accounts through the ATM network. In practice, this form of fraud hasn't happened, and it would be fairly easy to track unless the fraudster didn't steal very much -- a pattern of fraud on accounts whose cards have all been used at a particular merchant would be pretty easy to detect.

    It could happen, of course, and probably will someday. If it becomes sufficiently serious, then maybe banks will have to abandon PIN synchronization. Hopefully, by then the rest of the world will have caught up and the ATM PIN can be discarded entirely.

    • by rapiddescent (572442) on Monday January 08 2007, @11:32AM (#17509450) Homepage
      actually, with regard to point 3 above:

      EMV cards have two data items for the PIN usually called online PIN and offline PIN but pretty much all banks have the same value for each.

      The key worry about this 'attack' is that the electronics could be changed easily:

      • get the mag strip by asking the customer to swipe
      • gets the PIN value
      • completes the transaction using the EMV chip
      • stores the mag stripe and PIN value
      • reuse the card in an ATM/Store that does not require chip

      This fraud has already been perpetrated at a Shell garage in the UK [bbc.co.uk] when a bloke in overalls came into the Shell store to say he was the engineer to check the Chip n PIN device. The Trintech unit had a fault so that it would not self destruct when opened and a simple memory chip was added to the device. The bloke in overalls went back a few weeks later to 'check everything was OK' and took back the memory chip and had the card details and PINs - resultant fraud loss was GBP 1m; although not sure how much was recovered.

      I'm very wary of Tesco stores (UK) that swipe the mag stripe before inserting the card into a chip reader then ask the customer for the PIN - they effectively have the strip and the PIN which is enough to make a new card. The problem is that the chip cards have the legacy mag stripe to work in foreign ATMs and non-chip compliant stores.

      The way things are going with APACS CAP - punters will be inserting their PIN into any old keypad, so it'll be getting worse before it gets better.

      rd

    • In theory, this means a malicious merchant can modify their PIN pad to capture the PINs and account numbers, and can then use the information to drain the accounts through the ATM network. In practice, this form of fraud hasn't happened, and it would be fairly easy to track unless the fraudster didn't steal very much -- a pattern of fraud on accounts whose cards have all been used at a particular merchant would be pretty easy to detect.

      Yes it does. It happened to my brother and to his wife. The experiences

      • Interesting. I hadn't heard of any actual cases, but I haven't been doing EMV stuff for the last couple of years, so it's not surprising that I've missed it.

        Even with a little of this going on, the net effect is still to tremendously reduce overall credit card fraud. The bad part is that because this fraud is rare, the suspicion tends to fall more heavily on the card holder, especially card holders that don't have a solid reputation.

    • The real solution here is that both the chipcard and the PIN device should belong to the payer. Each account should be issued their own slim 10-key PIN pad with the smartcard integrated. When paying, the transaction would be transmitted to the smartcard (by contact or wirelessly) and then the user enters their PIN. The transaction is signed and sent back to the cash register or point of sale system.

      This way, the payer is reasonable certain that the PIN device has not been modified.
      • Yes, there are various implementations of cards with built-in PIN pads, and even other authentication technologies like fingerprint scanners, but none of them have been deployed because of the costs and questions about reliability.

        What may be the "next big thing" is called Near Field Communications and involves embedding a contactless smart card chip in a cellphone. With that architecture, the phone's keypad can be used as the PIN pad.

  • by reverseengineer (580922) on Monday January 08 2007, @11:16AM (#17509202)
    ...will be a modification to Tetris to make that damn straight-line block appear more often.
  • The Payment Card Industry (PCI) POS Pin Entry Device standards set by Visa/MC/JCB specifically require that a device used for credit card transactions NOT store the PIN and be resistant to tampering (such that a card holder would be able to see that something is wrong with the device if it had been tampered with). Merchants are required to use devices that have received PCI certification through a certified testing lab. It would be interesting if these devices have received that certification. Visa standar
  • researchers [...] recently modified a straight-off-e-bay chip-and-pin terminal to play Tetris, with a video on YouTube, demonstrating that devices are neither tamper-resistant nor tamper-evident [...]

    I think putting Tetris on the machine makes it pretty obvious that it has been tampered with.

  • Being an American living in Britian, Chip & PIN makes a lot of sense. Any sort of technology is available for fraud, but this is 100x better then the signature security as well as the PIN is not transmitted past the terminal because it is all handled through the card. Basically the CHIP on the card is asked if the entered PIN is valid and the chip is responsible for authorizing it, not some remote system that needs to be verified with.

    While retailers could hack their terminal to swipe PINs, they would
    • Re: (Score:2, Informative)

      the card never leaves the direct control of the card holder

      Try shopping in sainsburys, they swipe the card in their own machine then get you to enter the pin number in the chip and pin thingy.
      • Actually that's true of Tesco: they have a policy of "the cashier always takes the card from the customer and swipes it", and they've actually crippled the pin-pads that they present to the customer so that if you insert you card into them, it doesn't work.
        Sainsburys have the same policy, but haven't crippled their pin-pads, so if you just ignore the cashier trying to grab your card, and put into the pin-pad instead, it works fine.
  • The real problem (Score:3, Interesting)

    by Generic Guy (678542) on Monday January 08 2007, @11:20AM (#17509282)

    The real problem I see here is that new technology is presented as "unbreakable" then allows the business interests to ignore victims of fraud. In the U.S. we've already seen this happen with the special chipped keys for new vehicles. The auto makers insisted the technology was unbreakable, and the insurance companies responded in kind by denying theft claims from those victims unfortunate enough to have purchased a vehicle with one of these chipped keys.

    I'm sure the banks are ready to further punish any victims of this broken "unbreakable" bank card system. I'm not British, so I don't know how applicable this is in the UK, but I imagine it is still a problem.

  • liability shifty (Score:5, Insightful)

    by apodyopsis (1048476) on Monday January 08 2007, @11:21AM (#17509304)
    What annoyed me was the shift in liability. The old fashioned "swipe and sign" cards, if they were compromised and somebody nicked your cash then the banks could be held liable and some remittance sought. However - with the new system there is an automatic assumption that you have given your PIN away and hence its your fault and you can he held liable. So if somebody stands behind you, watches you type in your PIN and then follows you outside, mugs you and steals your card - then you can be held liable for not taking care of your PIN number. Also the system seems quite unreliable even now.
    • Re: (Score:2, Informative)

      Actually, I think quite wrong.

      With the original swipe system, the liability was with the bank; If you got frauded, then the bank had to re-emburse you. With the introduction of chip and pin, this remained the same; If you're chip and pin is frauded then the bank is still liable. FYI, if your swipe is frauded, it is now the place the fraud happened (e.g. the shop) that is liable, something that was introduced to basically force most companies to change over.

      I can verify that the bank take liability, as

    • Re: (Score:3, Interesting)

      As another poster pointed out, this concept is widespread in Canada. It's called INTERAC and it's so widespread that you can almost not even carry cash.

      In my experience the fraud protection has been really good. If your PIN or card details are stolen, any money lost is reimbursed by the bank. Moreover, when they detect that a retailer is stealing card numbers somehow (which they detect using a program to analyze log files and look for inconsistencies, etc.), they immediately cancel the cards of anyone who u
  • First, we've been using chip-and-pin smartcard-based credit and debit cards for years in France, without significant problems. Of course, there's been a few researchers here and there claiming to have broken part of the cards security, sometimes rightly so. However, the system has remained quite sturdy considering the huge amount of transactions done every day.

    I type my PIN almost every time I use my card, and I use my card a lot. Cheques are an almost exctinct species here. It's money or card, mostly. The
    • this bank account pin number? Does this mean that in England they have some kind of all-powerful PIN that unlocks whole bank accounts? In France the PIN is specific to the card, the bank wouldn't know w

      For internet and telephone banking there is a 6-10 digit number (at least with HSBC) chosen by the account holder for verification.

      Once you have someone's DOB, bank security number you can basically do anything with the account (eg wire the money anywhere else in the world). They usually ask for three digits
  • by creimer (824291) on Monday January 08 2007, @11:28AM (#17509410) Homepage
    Anyone tampering with one of these machines will be caught by one of Britain's numerous public security cameras, promptly arrested and beaten senseless before being throw into the drunk tank with an American dick named Sue. The banks are correct that tampering can only happen in an controlled environment.
  • http://www.etv.tudelft.nl/vereeniging/archief/lus t rum/90/english.html [tudelft.nl] was the Guiness book of records attempt by the faculty of Electrical Engineering at Delft University of Technology in the Netherlands.

    I was there and it was absolutely hilarious :) Although walking through the corridors was a slight bit of a problem with all the cables lying there.

    Great stuff for those interested in Tetris :)
  • I'm 24, live in the UK, and I have no credit or debit cards. All I have is a savings account card for the classic 'hole in the wall' money system. Shell (the petrol station) removed their Chip and Pin facilities for 3 months because of security concerns. Think I'll stick with cash for my purchases in the future.
  • Yeah, that's what I use at the ATM machine when I want to drive my SUV vehicle to the store and buy some DIMM modules. I'm working on a device to detect the HIV virus, but a I need a good TLA acronym to call it.
  • There have been cases in the US where thieves have gone as far as setting up real ATM's in places like shopping malls in order to con people out of their bank cards & PIN's. They just buy/steal a machine like you see in a convenience store, rig it so that it looks like it's working but displays an error message instead of dispensing cash, then wait for people to try to use it. It records the bank card info & PIN's that are entered, so when the crooks come and retrieve the machine they have a bunch
    • Re: (Score:2, Informative)

      Its not actually that easy.

      Yes, you can get the PIN that method, but unless you can actaully handshake with the EMV chip you have absolutly zero chance of getting the bank details. In the UK certainly the chip readers do now actually have the option to confiscate the card so a fake mini-EPOS terminal is not going to work.

      Your idea about using a real EMV EPOS terminal is a non starter as most of them are not allowed to do offline transactions - so you'd need an account and access codes to be able to us
  • "Steven Murdoch and myself took the chassis of a real terminal and replaced much of the internal electronics such that it allows us to control the screen, keypad and card-reader"

    Umm , how exactly does that prove the actual terminal is vulnerable? Other than if you get hold of one and have some tools at hand and lots of time then yes you can open the lid and get to the electronics inside. But I think we all knew that already.

    This is a non-event.
  • Personal Identification Number Number?

    Why not PINN number, or PINNN Number?

    I'm sure they enter their "PIN Number" into the "ATM Machine".
  • Debit Cards (Score:5, Informative)

    by Lodragandraoidh (639696) on Monday January 08 2007, @11:46AM (#17509634) Journal
    In the US we have debit cards that operate as both an ATM card, and equivalent to a credit card - only drawing the cash from the bank account instead of a line of credit.

    So - the only time I have to enter my pin number is at the ATM. For all other purchases I use it like a credit card (and save the ATM surcharge as well).

  • In Portugal we had an attempt on a similar technology back in the middle 90's, called PMB ("Porta Moedas Multibanco", which translates roughly into "ATM Wallet").

    It was basically a smart-card you could load with a certain amount on any ATM and make payments anywhere a terminal existed (many vending machines, for instance, accepted PMB) without inserting any code whatsoever. So it basically replaced your wallet, if someone stole it the money still loaded in the card would be lost.

    This wasn't much of a pr

  • Meh... If replacing the electronics inside a device counts as a demonstration that
    the device is "unsafe", then can never be a "safe" device.

    Its like taking a Volvo, swapping the accelerator with the brake, and then declaring
    that Volvo's are inherently unsafe.

    I still haven't seen evidence of the tamperer's acquiring possesion of credit
    card info -- which is really the issue at hand.

    • There's something about being pedantic that makes any joke you construct seem arrogant and quite the opposite of funny. Perhaps when you're filling the pedant role in the future, you can just stick to the job instead of trying to amuse at the same time.
    • Re: (Score:3, Informative)

      I used to work at a private financial institution that was a member of the Interac network. The security on modern ATMs in Canada is very good. Interac certification requirements are equal to or better than VISA/Plus requirements, which require:

      • An EPP (Encrypting PIN Pad) that uses 128 3-DES shared key encryption. The EPP is sealed at the factory.
      • A specially hardware device for generating gateway keys and terminal keys
      • MAC-ing of encrypted message between terminal and gateway to prevent errors and detect