The scams never go away. The PIN block fraud involves your debit card. When a debit card is swiped, say at a gas station, the information on it is sent to a server. Included in this information is your debit card number, the data from the magnetic strip, and the encrypted PIN code. When you enter a PIN number it is sent to the server, too. The server unencrypts the PIN number (residing from the magnetic strip) and compares it to the one you entered. Of course they must match in order to complete the transaction.
Here lies the problem: some retailers save your debit card information (including the PIN number) on their server. There is *no* reason to save it - it should be erased after it is used for the current transaction. A hacker then breaks into the retailer’s computer system and steals the debit card number, the encrypted PIN, and the key to unencrypt the PIN. Then counterfeit debit cards are made and it’s off to the nearest ATM machine.
How do you fight it?
A few ways.
1. Use a signature instead of a PIN number when using the debit card.
2. Do not use a debit card; use cash. Especially with no name gas stations, stores, etc. I only use the debit card at one grocery chain and I use cash for other transactions.
Doug
