On a recent visit to a local supermarket I noticed something new being displayed on the keypad before the transaction starts:
(“Did you know that you can remove the PIN pad to enter your PIN?”)
Picking up the keypad will allow the cardholder to align it such that bystanders, or the merchant, cannot observe the PIN as it is entered. On the one hand, this seems sensible (if we assume that the only way to get the PIN is by observation, no cameras are present, and that even more cardholder liability is the solution for card fraud). On the other hand, it also makes some attacks easier. For example, the relay attack we demonstrated earlier this year, where the crook inserts a modified card into the terminal, hoping that the merchant does not ask to examine it. Allowing the cardholder to move the keypad separates the merchant, who could detect the attack, from the transaction. Can I now hide the terminal under my jacket while the transaction is processed? Can I turn my back to the merchant? What if I found a way to tamper with the terminal? Clearly, this would make the process easier for me. We’ve been doing some more work on payment terminals and will hopefully have some more to say about it soon.