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New ATM technology could keep card information safer

Which would you prefer: A $2 fee or a 15-second commercial? (AP)

John Aaron, wtop.com

WASHINGTON — News reports recently warned of the dangers of using outdoor ATMS — where thieves can steal card information by placing a device over the card slots.

But some new, high-tech solutions may be coming to the rescue, according to The Wall Street Journal.

One company, Diebold Inc., thinks consumers will ditch their cards altogether, in favor of an app. Under that system, shoppers could just put their smartphones up to the machines in order to get cash.

Another idea by NCR Corp. that’s already being used in Brazil keeps a person’s card and PIN, but adds a layer of security by scanning the veins in the cardholder’s hand to confirm his identity.

To keep data safe, banks are looking at using cloud computing technology to store information, rather than having it saved in the hard drives of individual machines.

The FBI tells the Journal that more money is now stolen through data breaches at banks than in actual bank robberies.

While experts say the concepts would improve security overall, they would open up other avenues for thieves to access data.

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(Copyright 2012 by WTOP. All Rights Reserved.)


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