Judge backs Halifax in Chip and PIN clone case
Phantom withdrawal verdict may go to appeal Halifax, the UK retail bank, has scored a victory in a closely-watched 'phantom withdrawal' case that put the security of Chip and PIN on trial.… Whitepaper - Creating portals with Office Sharepoint: put an end to the information free for all
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Phantom withdrawal verdict may go to appeal By John Leyden • Get more from this author Posted in Crime, 5th June 2009 06:27 GMT Hitachi IT Operations Analyzer - 30-day free trial Halifax, the UK retail bank, has scored a victory in a closely-watched 'phantom withdrawal' case that put the security of Chip and PIN on trial. Halifax customer Alain Job sued the bank after he was held liable for making eight disputed cash machine withdrawals from his account. Job was left £2,100 out of pocket from the series of withdrawals in February 2006 and launched a lawsuit after failing to obtain a refund from the bank, or through arbitration. RegAd('mpu1', 'reg.security.4159/crime', 'pos=top;sz=336x280', VCs); Cases over "phantom withdrawals", where money is withdrawn from bank ATMs without the card holder's permission and where card details have not being divulged to third parties, are commonplace, even in the UK. Fraudulent withdrawal of money in UK accounts using cash machines outside the UK are a growing problem. These default to reading details from easy to forge magnetic stripes, which Chip and PIN cards still contain. But Chip and PIN was supposed to stop the use of cloned cards, at least in UK ATMs. Chip and PIN is the UK's iteration of the global EMV standard for chip-based payment cards and acceptance devices, including point of sale terminals and ATMs. Job's case involved disputed withdrawals involving a Chip and PIN card and UK's cash machines that would have read it. Because of this, the case is the first to test UK bank's assurances over the security and integrity of Chip and PIN in court. At a one-day hearing in April at Nottingham County Court, Job and his legal team argued his ATM card might have been cloned and used to withdraw funds without any negligence on his part. Halifax offered evidence from computer printouts of log files to support its argument that Job's real card (and associated microchip) was used to authorise the disputed transactions. A judge found in favour of Halifax and dismissed the lawsuit in a ruling issued on Thursday, Finextra reports. Job's barrister, Stephen Mason, told IDG that Halifax had junked evidence that might have ascertained if a cloned card was used. The original ATM card and the Authorisation Request Cryptogram were destroyed by Halifax. Job, who faces legal bills of up to £50,000, is considering an appeal. ® Hitachi IT Operations Analyzer - 30-day free trial 92 commentsPost a comment Related stories Data-sniffing trojans burrow into Eastern European ATMs (3 June 2009) Cambridge security boffins slam banking card readers (26 February 2009) Merchants and punters cry foul over Verified by Visa (23 October 2008) Organized crime tampers with European card swipe devices (10 October 2008) UK banking fraud losses rise to £301.7m (1 October 2008) Whitepapers The Register Agile Data Center Summit This event explores the cost of power and building it into the management strategy. Topics also include Cloud, virtualization, sourcing and their implications on today’s software architectures. Cashing in on banking security and compliance With awareness of data breaches at an all-time high, banking institutions are working hard to implement policies and solutions that protect sensitive financial information Shopping for a secure file transfer solution for retail Retailers are under increasing pressure to adhere to PCI DSS in an effort to avoid costly fines and the even more detrimental loss of customer confidence that results from data breaches. Security compliance: ending the threat of weak user passwords for file transfer servers To effectively combat the risk of vulnerable passwords, your secure file transfer solution must provide the tools to establish password policies that prevent weak passwords and ensure your network’s security. 2-Minute overview video of WS_FTP Server Get the basics on secure file transfer and the robust capabilities of Ipswi