Could Square Pose a Threat For Your Fitness Business?
It is possible that Square Readers you’re using at your fitness business could be at risk says Engadget.
On Monday Technology news source Engadget elaborated on the easily hacked device, Square that could possibly be turned into a “tiny, portable card skimmer,” with the simple tinkering of the small unit. With Square the possibility of cyberthieves recording the signal transmitted by the card after swiping with the magnetic strip is also present. This increases chances that a card could be charged for items without any consent of the real holder’s approval. “During a valid sale, a malicious merchant or third party can record several extra encrypted swipes of a credit card,” explain the researchers
Square responded to potential security threat allegations by stating: “It should not surprise us that a system using essentially the same technology as cassette tapes is vulnerable. That is why major credit card companies, lenders and businesses are now embracing new, more secure, authenticated payment technologies.”
Square, in its defense, stated that an altered reader will not in fact work with the company’s app and that a stored swipe cannot in fact be handled more than once. That still doesn’t leave out the chance for theft, Engadget stated, with the chance that a hacker can construct software that in fact masquerades as an official site but in turn hides a skimming code.
The magnetic stripe decoding threat will be alleviated by country wide adoption of chip-and-pin solutions, the company said. Luckily for the fitness industry and merchants across the country the mandate will be coming in early October.