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[personal profile] armb
http://www.cl.cam.ac.uk/research/security/banking/nopin/oakland10chipbroken.pdf
"In this paper we describe and demonstrate a protocol flaw which allows criminals to use a genuine card to make a payment without knowing the card's PIN, and to remain undetected even when the merchant has an online connection to the banking network."

http://www.lightbluetouchpaper.org/2010/02/11/chip-and-pin-is-broken/

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