Most ATMs not equipped to use new card security features

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Mumbai, Nov 25: If you thought that your credit card/debit card is insulated from fraud just because it is incorporated with the latest security features like Triple DES, think again.

It could just be that your account is being compromised by the most unlikely factor -- your bank itself.

Because, their Automated Teller Machines (ATMs) and Point Of Sales (POS) terminals may not have the necessary software to invoke these security features, rendering them totally ineffective.

Consider this: the latest security feature is the Triple DES, which replaces the earlier system of DES (Data Encryption Standard). So, while it would take a hacker 27 hours to hack a PIN number on a DES card (using the most sophisticated computer processes), it would be impossible for him to fiddle with the PIN number of a Triple DES encrypted card.

Also in wake of the growing incidence of frauds on payment cards, card issuing companies - MasterCard and Visa - have asked banks the world over, to migrate to Triple DES compatible machines by March 31,2006.

However, the retail head of a private sector bank revealed, “Only about 25-30% of the ATMs and 5-10% of the POS terminals have been upgraded with the software needed to invoke the security feature. This despite the fact that the cost of upgradation is only about Rs 1 lakh per machine.”

NCR Corporation, a company that provides ATMs as well as software upgrades, also agreed that the penetration of Triple DES compatible machines was low.