Institutionen För Systemteknik 581 83 LINKÖPING
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Avdelning, Institution Datum Division, Department Date 2004-06-04 Institutionen för systemteknik 581 83 LINKÖPING Språk ISBN Language Rapporttyp Report category Svenska/Swedish Licentiatavhandling ISRN LITH-ISY-EX-3533-2004 X Engelska/English X Examensarbete C-uppsats Serietitel och serienummer D-uppsats Title of series, numbering ISSN Övrig rapport ____ URL för elektronisk version http://www.ep.liu.se/exjobb/isy/2004/3533/ Titel Plastkortsystem och brottsmöjligheter, en genomgång av egenskaper hos kort och läsare Title Plastic card frauds, a survey of current relevant card and system properties Författare Natalia Savostyanova and Valeriya Velichko Author Sammanfattning Abstract Recently the society has been turning from the use of paper-based technologies to plastic cards in certain spheres of our life. With the emergence and proliferation of high technologies we cannot content with the security provided by paper only. Therefore the society has chosen plastic to protect its information because it offers far more security based not only on human perception but also on machine-readable elements. The number of plastic cards in circulation in different spheres of our everyday life increases constantly. They replace money, documents and allow easy and safe access to some services. In spite of its security the plastic card however is subjected to fraud. Plastic card fraud results in significant losses for the various industries. Since the first appearance of plastic cards methods of committing fraud have changed dramatically. Now there is a wide range of high technologies at the disposal of criminals as well as card manufacturers. Therefore we have put the great emphasize of this work on the analysis of the most common card technologies in the Plastic Card World, the magnetic stripe and the chip, existing crimes and main means of their committing. And we also have revealed the weak and strong sides of the prevention techniques, which are currently in use. Nyckelord Keyword plastic card, smart card, magnetic stripe, ATM, attack, crime, counterfeiting, skimming, PIN 2 Information Theory division Department of Electrical engineering Linkoping Institute of Technology Master’s thesis Plastic card fraud, a survey of current relevant card and system properties LiTH – ISY – EX – 3533 – 2004 by Natalia Savostyanova and Valeriya Velichko spring 2004 3 4 ABSTRACT Recently the society has been turning from the use of paper-based technologies to plastic cards in certain spheres of our life. With the emergence and proliferation of high technologies we cannot content with the security provided by paper only. Therefore the society has chosen plastic to protect its information because it offers far more security based not only on human perception but also on machine-readable elements. The number of plastic cards in circulation in different spheres of our everyday life increases constantly. They replace money, documents and allow easy and safe access to some services. In spite of its security the plastic card however is subjected to fraud. Plastic card fraud results in significant losses for the various industries. Since the first appearance of plastic cards methods of committing fraud have changed dramatically. Now there is a wide range of high technologies at the disposal of criminals as well as card manufacturers. Therefore we have put the great emphasize of this work on the analysis of the most common card technologies in the Plastic Card World, the magnetic stripe and the chip, existing crimes and main means of their committing. And we also have revealed the weak and strong sides of the prevention techniques, which are currently in use. 5 6 ACKNOWLEDGMENTS This work is a result of long-lasting efforts, which led us to the increased feeling of tolerance. Therefore we would like to thank each other for the deep understanding and friendship, silence and talkativeness, sharing the ideas and thoughts. While writing this thesis we have learnt how to hear, how to speak and how to be patient to each other’s opinions. We would like to thank our supervisor, Viiveke Fak, without whom this work would not have appeared. We especially want to express gratitude to our parents and siblings for their love and wholehearted support in difficult times. Also we would like to thank our friends and neighbours for their help. Спасибо вам всем за внимание, терпение и понимание! 7 8 TABLE OF CONTENTS LIST OF FIGURES ................................................................................................................. 13 LIST OF ACRONYMS ........................................................................................................... 15 CHAPTER 1. INTRODUCTION ............................................................................................ 19 CHAPTER 2. BASICS OF PLASTIC CARD CRIME ........................................................... 22 2.1. Types of Plastic card fraud............................................................................................ 22 2.2. Parties of Plastic card fraud........................................................................................... 23 2.2.1. Criminals................................................................................................................ 23 2.2.2. Victims ................................................................................................................... 25 Material and moral losses............................................................................................ 25 Physical impact ............................................................................................................ 26 2.3. Summary ....................................................................................................................... 26 CHAPTER 3. CARDS ............................................................................................................. 27 3.1. Generalities ................................................................................................................... 27 3.2. Magnetic Stripe ............................................................................................................. 31 3.2.1. Magnetic characteristics......................................................................................... 33 Signal amplitude .......................................................................................................... 33 Jitter ............................................................................................................................. 33 Coercivity ..................................................................................................................... 33 3.2.2 Physical encoding.................................................................................................... 34 3.2.3 Logic encoding........................................................................................................ 36 Error detection/correction/recovery ............................................................................ 36 3.2.4. Tracks..................................................................................................................... 37 CVV/CVC ..................................................................................................................... 40 3.2.5. Security techniques ................................................................................................ 41 Watermarking .............................................................................................................. 41 Magneprint .................................................................................................................. 43 XSec.............................................................................................................................. 44 3.2.6. Advances in the magstripe technology .................................................................. 45 3.2.7 How to make a subway ticket ................................................................................. 46 3.3. Smart Cards................................................................................................................... 48 3.3.1. What is a Smart Card?............................................................................................ 48 3.3.2. Travel in time ......................................................................................................... 48 3.3.3. Smart Card Applications........................................................................................ 50 3.3.4. Types of smart cards .............................................................................................. 50 Memory cards .............................................................................................................. 51 Microprocessor cards .................................................................................................. 51 Contact cards ............................................................................................................... 52 Contactless cards ......................................................................................................... 53 Hybrid cards ................................................................................................................ 53 Dual interface cards..................................................................................................... 54 3.3.5. Smart card life cycle..............................................................................................