Researchers claim Square readers could be hacked, company responds (updated)
Update: Square has provided us with the following statement on the matter, stating that its products have special security measures and that the described problems are more of an industry-wide issue:
This story is about issues with magnetic-stripe credit cards, not Square. In 2015, 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 is helping to lead the way with our own card readers for chip cards and contactless payments.Any card reader on the market can be deconstructed. The chip could be crushed and then reassembled by using the undamaged shell of the reader. At Square, we have processes in place to prevent malicious behavior on damaged readers. Our Square Register software contains a number of security precautions that protect cards that are swiped on unencrypted readers. If our encrypted readers are damaged, they will not work with Square.
A new report out of Motherboard details how three recently graduated Boston University students have been able to easily hack the increasingly popular Square Reader. For those unfamiliar, Square Reader is an iOS accessory that allows retailers to easily accept credit and debit cards without having to spend the money on traditional point of sale terminals. Hackers have now discovered, however, a very easy way for merchants to steal card information from customers.
