Heartland releases new swipe terminals

Heartland releases new swipe terminals

Heartland Payment Systems recently unveiled its new end-to-end encryption product called E3. The E3 technology is designed to protect credit and debit card information from the time a card is swiped until the conclusion of the financial transaction. This is an improvement over past encryption products, which often left cardholder information unencrypted as it traveled from the merchant's terminal through the payments network.

Unencrypted data are prime targets for professional computer hackers who break into vulnerable merchant networks through wireless Internet routers. Once inside, hackers can install programs that report debit and credit card information as it moves through retailers' computers. Such information may be used to drain the monetary accounts of unsuspecting consumers or sold to other criminals.

Such was the case with 28-year-old Albert Gonzalez, a self-taught computer expert who was apprehended last year by authorities on charges of computer data breach and cybertheft. Gonzalez hacked into several online merchant accounts through a practice called "war driving," where hackers drive around in search of unprotected wireless networks. Once inside these networks, Gonzalez and his accomplices installed packet sniffers that could steal credit card processing data. The software would also record the magstripe data on consumer debit and credit cards, which were later programmed into counterfeit cards.

Merchant accounts targeted by Gonzalez and his cohorts included OfficeMax, Barnes & Noble and Sports Authority. In total, Gonzalez and his crew stole more than 90 million debit and credit card numbers from the TJX retail chain, and 130 million debit and credit card numbers from Heartland Payment Systems.

In response, Heartland introduced the E3 encryption technology, which automates the process of changing encryption keys that convert account holder information into encrypted data. Previously, such encryption had to be performed by hand, a slower process that was also more prone to data breach. The E3 technology also maintains encryption of debit and credit card information throughout the entire transaction process.

Merchants must purchase new E3 swiping terminals or magnetic-stripe readers that can read E3 if they wish to take advantage of the increased security benefits. Heartland says that electronic transactions using E3 will progress faster, and the company will not charge additional transaction fees.

Published: June 1,2023