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chip cards.
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Credit cards with tiny microchips have been increasingly used in the US since 2015.
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The old type of card, which utilized a magnetic strip, was easier.
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The hack and steal information from the chip is supposed to cut down on credit card fraud, and it has to some extent.
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But CNN's Laurie Seagal found out how it, too, can be hacked when she spoke with employees of a company that aims to protect people and organizations from digital crime chip cards they take forever.
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On the bright side, they're also more secure.
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They're supposed to stop criminals from stealing our information.
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But the very thing that makes them take longer may also make them vulnerable on an old fashioned credit card.
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The data that's sent to the register s static.
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It never changes on a chip card.
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The data's randomized, which means it's only good for one transaction.
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Normally, information that expires after just a minute would be useless.
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But if hackers could steal it and use it all before it switches again, they're in business.
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And new research shows that might actually be possible if hackers can crack open a store register and add something called a skimmer.
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Maybe they're friends with the cashier.
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Maybe they own the store themselves.
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Whatever the case, the hackers wait for you to insert your card and then they're minute begins.
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Here's how it works.
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During that minute, the hacked register is stealing all of your cards information and wirelessly transmitting it to another device the hackers have set up elsewhere like a smartphone ready to make a mobile purchase Or in this case, ah, hacked a T m.
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That's confusing the data for your physical banking card.
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And first of all, wow, What did we do?
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See?
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Can you explain what just went down?
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The date on the card is getting transmitted to a device that's inside this false front here on that, then in turn, is starting to punch in all the data 20 in the pen, asking for $200 hitting with there's little this'll robot hands that are actually putting the pin numbers.
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In there.
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You have the skill that enables you to hack in a team and make money just kind of flow out.
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Yet you want to use this skill for good.
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A lot of people wouldn't take the money and run So what is it about you that makes you want to use this power for good?
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Mom, I like being ethical or, like, you know, like being able to go in society and, you know, not be scared of that.
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Ever knock on the doors, You know, I'm going to the police in general.
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I love the Internet, and I'm a big technophile.
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I want that stuff to keep working.
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And the only way that's gonna keep working is guys, like are working at least at pace of the bad guys.