The SPIN Edge
To combat fraud, Card Issuers traditionally require additional verification at the Point Of Sale (POS) on every purchase. (For example, requiring a 4-digit PIN on Chip & PIN cards; 3-digit code on Card-Not-Present transactions).
Requiring a PIN or any code on every transaction
Is a burden on the customer
Makes the PIN more vulnerable to exposure
The SPIN, on the contrary
Is more user friendly, (it is used rarely, only upon suspicion)
Is less breakable and more complex
Is always kept in the device and never transmitted anywhere
Is less prone to disclosure
A recent study in Europe found 44% of surveyed consumer fraud claims on Chip&PIN cards were rejected by the issuer because the PIN was provided, holding the consumer liable for its exposure
Is this the ultimate solution to fraud?
Not Quite! As you can see in this clip
This device has been repeatedly hacked, even in the latest iPhone 6
For reasons of ease-of-use, practicality, and of avoiding false alarms, the
device identification tuning is rather lax, making it prone to compromise
A more rigid tuning of the device would be practical only if used much less frequently
Apple Pay e-wallet application replaces the PIN with a fingerprint (Touch ID)
