In the demo they buy coffee, etc. with it. You couldn't buy something more expensive with it because the bank would deny the charge.
NFC is similar. You can use it for small transactions, but not larger ones.
In the demo they buy coffee, etc. with it. You couldn't buy something more expensive with it because the bank would deny the charge.
NFC is similar. You can use it for small transactions, but not larger ones.
Their attack uses offline PIN mode. This is further expanded upon in section III.
The simplified attack is such: Basically the PIN signed block doesn't get sent to the bank. Verification is only between the terminal and the card, and the card (or rather MITM hardware) returns a "all is well, transaction approved" message when in fact no such thing happened. The terminal doesn't go online and talk to the bank and verify the signed PIN block.
This is essentially misconfiguration of the merchant terminal that ignores the result of the PIN verification.
This is similar to when you tap a card to buy something. If the merchant system doesn't go online to verify it -- which it often doesn't for small transactions (<$10) then you can game the system.