Point-of-sale terminals that use magnetic-stripe cards and PIN codes have a fatal flaw: a malicious merchant can
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Point-of-sale terminals that use magnetic-stripe cards and PIN codes have a fatal flaw: a malicious merchant can modify his card reader to log all the information on the card and the PIN code in order to post additional (fake) transactions in the future. Next generation terminals will use cards with a complete CPU, keyboard, and tiny display on the card. Devise a protocol for this system that malicious merchants cannot break.
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The bank sends a challenge a long random number to the merchants computer ...View the full answer
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Joseph Mwaura
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