Preplay Attack on Chip and PIN

Interesting research paper on a bank card chip-and-PIN vulnerability.

Our new paper shows that it is possible to create clone chip cards which normal bank procedures will not be able to distinguish from the real card.

When a Chip and PIN transaction is performed, the terminal requests that the card produces an authentication code for the transaction. Part of this transaction is a number that is supposed to be random, so as to stop an authentication code being generated in advance. However, there are two ways in which the protection can be bypassed: the first requires that the Chip and PIN terminal has a poorly designed random generation (which we have observed in the wild); the second requires that the Chip and PIN terminal or its communications back to the bank can be tampered with (which again, we have observed in the wild).