Can criminals make a card skimmer with just an iPod?

Credit card fraud risks won't always show up in predictable ways. recently reported on the surprising ways an iPod Nano could let thieves steal card information. According to this article, there have been reports of the slim media device being hidden inside the front of an ATM to secretly spy on customer transactions. This behavior seems to be especially rampant in Manchester, UK.

Writing for this source, Lee Matthews identified chip and pin card readers as one way to possibly help combat scams like these. Without the right system, preventing becomes more crime difficult even when the user has a card with a chip in it, because the scanner cannot accept it.

Although chip and pin is not the only way to secure credit card information, this case does show how physical threats can also pose dangers to customer information. There doesn't appear to be any word on whether this particular effort to "skim" bank cards proved successful.

"The big problem is that not all point-of-sale equipment and ATMs support chip technology yet," Matthews said. "So even though it's right there on your card, a lot of machines just ignore it — making skimmers that steal stripe data and iPods that capture PIN entry a workable system for creating duplicate cards and making fraudulent purchases and withdrawals."

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