Analysis: Identifying crypto holes in Eftpos machi

mask.of.sanity writes: Security experts charged with testing Australia’s PIN-Entry Devices (PED) before they hit supermarkets have discovered cryptographic holes in nine in ten Eftpos terminals.

The devices encrypt user PINs to prevent information from being intercepted while in transmission. Secret keys are held by sending and receiving parties so that encrypted messages can be read.

The problems can be eradicated if simple key management principles were applied and complex systems are avoided.