Almost alone among developed nations, U.S. credit and debit cards have a magnetic stripe that contains all the financial information necessary to make a purchase. Once information gets stolen from a merchant, it can be encoded into a magnetic stripe and used with a new card. Smart cards in Europe and elsewhere encrypt that data and store it on a microchip, which is much tougher to replicate. More important, the cards also require a personal identification number (PIN) to work. This “chip-and-PIN” system introduces a second authentication, forcing thieves to have both pieces of information to successfully use the card. It’s a combination of advanced technology and simple common sense. - Your Credit Card Has a Dangerous Flaw That the Banks Refuse to Fix
"Why are small businesses such frequent targets? Because they offer hackers the easiest path to your financial information. In fact, security consultants say, there’s an entire underground industry built around extracting customers’ credit card numbers from retailers’ point-of-sale systems." Slate: Why it’s so easy for hackers to steal financial information from restaurants
“My country should have control over Google, Skype, Yahoo, etc.,” he said by e-mail. “I’m breaking all encryption algorithms and giving power to my country to control all of them.” Is an independent Iranian hacker trying to help his government spy on its people?