Gift Card Hacking

TheSauce writes "MSNBC has this discussion of how easy it is to hack and jack the contents of those lovely Plastic Gift Cards one sees at most Mass Merchants and Consumer Electronics stores. One retailer notes that the odds of this occuring are about at the level of being pickpocketed."

Comments

Re:Barnes and Noble.

[Grimmtooth]

The account number was on the magstrip of the card, was printed on the card, but was _also_ printed on the gift receipt that came with the card.

Which is EXACTLY why several states, California foremost among them, have begun to implement consumer protection laws that require that the receipt NOT display the account number and/or the expiry date (depending on the state). I believe in the case of California, it goes into effect on Jan 1 2002.

My company's ready. I wonder how many other POS vendors aren't? :-)

At any rate, it is the store's responsibility to comply, by using compliant POS software. Since it is easier to implement across the board than on a state by state basis, I presume that if a vendor has fixed it for CA, they will be prepared for the other states, too.

Outside the US is not something I'm familiar with.

Re:the perfect crime?

[tswinzig]

one previous respondent had said something to the effect of, "..this is just like digging in a cash drawer.." this isn't just any kind of theft.. it's the ultimate kind! a better imperfect analogy would be: "..the store leaves $20, $50, and $100 dollar bills hanging from displays at the counter.."

No, that's a terrible analogy, since you're stealing from the customer that paid for the card, not the store, as you would be if they left money hanging around.

Re:What are the odds

[Chanc_Gorkon]

Around here, the gift cards are just sitting by the register back by the candy (Meijer's and Walmart both did this). They were easy to get, even easier to swipe because they were just glued to the back of a bigger card. To swipe one, one would just have to drop a bunch of cards, and then while bent over, peel the card off the bigger card. Also, I don't know about Walmart, but Meijer's were all precharged. The UPC's on the bigger card were even all the same (probably something like 41250 *****, I used to work at Meijer and all Meijer Branded stuff including the gift cards start with the same 5 numbers.). Thing is most stores don't have the storage or available UPC's to give each card a separate UPC code (only way they could keep the cards as they have them and keep them deactivated until they are scanned). The only way I think they could make these things more safe is if you had to do what you used to do and go to Guest Services and buy the card and have the guest services folks charge a denomination on them by swiping the card. Most of the cards I have seen as of late all had how much money each card held printed right on the card! This was at every place I have been this season including even some of the nicer stores! Meijer did not even have cashier's type in a code or anything to activate them. They just swiped it and the appropriate figure was added to the total along with your groceries. This may have changed, but I agree with the article that it is easy. I doubt many would even have to have the card programmers to steal lots of cash.

I hate nationally syndicated stupidity

[Grimmtooth]

By way of boda fides, I work for a POS (point of sale) vendor that just happens to support the processing of said gift / stored value cards. As a result I have had to become very familiar with the mechanics of the whole thing.

So, a few comments:

• Despite what MSNBC would tell you, Debit cards are not protected from theft by a lack of visible account number. Rather they are protected by encrypted PIN.
• Despite what MSNBC would tell you, you can buy card writing equipment without going to the black market. They are perfectly legal. They just cost BIG bucks, and that's why most people don't have one :-)
• The theft method described to lift account numbers is no different than what is done with credit cards, except in the case of the latter you have to work harder to get a valid account number. Anyone with a card writer WOULD know how to do that, trust me.
• Credit cards are a far greater risk because they are unrestricted in where they may be used, unlike gift cards.
• Be aware that most gift card processors allow for the process of 'cashing out' the card. Provided the store allows, there's no reason that there would be unclaimed cash left on the card. Of course, those merchants that do NOT allow cash-out are the ones to be concerned with.
  

Slow news day, plain and simple.

Re:I hate nationally syndicated stupidity

[Grimmtooth]

Corrections to corrections: :-)

[Card writers are] not that expensive. You can get one on e-Bay for around $300.

Well, that's handy to know if the one we use in the lab conks out :-)

There is a value encoded on the magnetic stripe of credit cards called the CVV (card verification value) that is generated cryptographically, plus additional cardholder information that is not printed on the face of the card. In order to encode a valid credit card magnetic stripe you either need to read the stripe off the card you're copying or you need access to the production systems used to create the cards.

Track 1 of the card contains the carholder name, and the CVV2 information is not on the card but part of the back-end processing at the network side of the things. There is obscured information within the card account number that provides anti-counterfieting information, but aside from that the reset of the track info is largely ignored at the POS device and is problematic on the credit network side of things. There is one value that specifies the processor, for example, but most that I've seen have the same value. Furthermore, Track I information is often ignored and USUALLY not required to process a credit card. Most networks favor Track II over Track I and some just can't process Track I at all. In other words, they're not too secure and there is CERTAINLY very little in the way of protection outside of CVV2 -- which isn't even globally supported by all networks. Before you mention AVS, it is only valid for manually keyed accounts, or internet purchases.

Yes but no. It's true their use is less restricted, but for that reason there are many other security measures applied, such as back-end systems that check for uncharacteristic buying patterns. Also, the consumer is pretty safe from credit card fraud, since your liability is limited to $50.

The back-end processing protection is usually after the fact, and a clever thief would probably not be establishing a pattern, anyway. Of course, 'smart thief' is often an oxymoron :-)

Some [allow cash out], most don't. The reason is that many stores that sell gift cards use exactly the same technology for provided card-based in-store credits. When you return some merchandise without a receipt, they don't want to give you your money back (otherwise you could do a tidy business buying from mail order and "returning" to the more expensive place) so instead they give you a card. Allowing you to cash out the card would defeat the purpose.

Careful review will indicate that I was talking about the card processing networks themselves, not the individual merchant policies. Providing a gift card for a refund is a merchant policy (and a foolish one, whatever happened to 'no receipt, no return' anyway?). The capability is there, and it's perfectly reasonable to expect to get your money's worth out of it. We'll see how that court case goes, hopefully on the side of the consumer.

Re:Whee

[Col. Klink (retired)]

I guess you missed the part where they returned the goods for cash...

Re:Big Deal

[Brian Kendig]

Let's hear you say that next time your girlfriend gives you a $50 gift card for your favorite electronics store, and when you go to use it, the store clerk tells you there's no balance left on the card. He also points to the small print on the card which says (as quoted from the article) "We cannot be responsible for funds used without your knowledge."

The hackers aren't just inflating the value of the card -- they're re-encoding the card so that it represents a card that someone else bought. Sure, they're "exaggerating the value of the gift card," but by lowering the value of someone else's card.

Re:A thing I learned about using plastic

[uspsguy]

If you write See ID on the signature line of your card and try to use it at any Post Office, it will be rejected. Cards must technically be signed to be valid.