Square – Security Risk?

Square is an electronic payment service that is designed to be used for mobile devices. It is a hardware dongle that reads the sound file of a magnetic stripe and parses the retrieved data to obtain the information. Applications have already been released on the markets for Apple and Android so that users in the United States can accept credit cards almost anywhere. This new product does pose a large security risk because a person can obtain the Square dongle for free and it is very small and non conspicuous. Third party programs have already been developed, such as Magread on maemo.org that parses the sound files to display the data on the card.

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6 thoughts on “Square – Security Risk?

  1. I found this to be very interesting. I never tried to figure out how Square worked, but it is a very effective tool for processing payments on the go.

  2. it sounds pretty safe, but how did they determine if it was less risky has it been exposed enough.

    • The tiny device linked with an audio recorder can be used as a small skimmer to steal credit cards and other sensitive information all non-encrypted. I don’t know how you can consider that safe.

  3. I’ve seen this device used more for small businesses and such than personal use. I’ve always been intrigued with how it work. I once saw a device almost identical to this used on an iPad to process credit card payments and that reader/app required you to sign with your finger.

  4. I think it’s similar to the readers that Apple stores use to process credit card payments. I believe it’s by Intuit, but I don’t know if it’s safer though.

  5. I totally see how this can be a security risk as its basically a skimmer but people don’t see it as one since its just your phone, with a slightly odd looking attachment. On a none security note I heard these things are horrible at reading the cards and its easier to just type in the card information. If that’s the case I think Paypal also has a way to charge people by inputting the information. Personally I trust Paypal over all others.

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