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Credit Cards Recalled, Consumers Warned As Spanish Card Processor Is Probed

Written by Fred J. Aun
November 30th, 2009
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Evidence of data theft at a Spain-based credit card processing company prompted the recall in November of more than 100,000 cards in Germany. UK cardholders were told to watch for unauthorized activity, but the authorities did not reveal any details about the breach–including the processor’s name. The Daily Mail reported that the “criminals are understood to have stolen card details and then used them to buy goods online.” In a November 19 statement, Germany’s Central Credit Committee (ZKA) called the recall a “precautionary measure and routine operation” and said the card exchange was nearly complete. It said: “All German banks and savings banks have significantly tightened monitoring of the affected cards, which further limits any potential abuse.”

Cards issued by DKB-Bank, Barclays and Karstadt-Quelle are among those at risk, but neither Visa nor MasterCard reported any breaches of their systems. The BBC reported that Visa Europe was “aware of a possible card data security issue in Spain,” but revealed nothing further. The processor is reportedly being investigated for fraud, so the incident may be an inside job rather than the work of hackers or skimmers.


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Kill All The Passwords

This article does mention, but does not give enough attention to, the fact that the attacks discussed are only feasible when the encrypted password file can be copied and subjected to an offline attack. The trick is to have authentication performed on a separate, much more strongly secured host - such as an Active Directory Domain Controller, or a Kerberos server, or a NIS+ server, or even using something as banal as an LDAP-over-SSL authentication dialog. In these environments, the odds of the "password file" being stolen and subjected to an offline attack go to near zero, and only online attacks may be carried out by the attacker. With sensible exponential backoff between failed password attempts, lockout after a modest number of failed attempts on a single account, and pattern detection, that minimum 7 character password is quite secure enough. Passwords aren't dead yet for security purposes, and they will be with us for a very long while to come for practical purposes. The trick is to employ them correctly. Read more...
The possibilities you describe are years away from being implemented at best, so for the moment passwords are an ugly reality. Luckily, password managers can easily manage hundreds of passwords of any length. The only thing a user needs to remember is the master password. It seems like an easier task to educate users on how to use password managers rather than implement complex security technology on a global basis. Read more...