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Michaels Stores' Checkout Terminals Hacked

A typical Michaels retail store

Another credit card security breach again. If you happened to shop at any of the Michaels local stores recently that are located at the following states, your credit transactions may have been compromised:

Illinois, Colorado, Delaware, Gerogia, Iowa, Massachussets, Maryland, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Pennsylvania, Rhode Islands, Utah, and the State of Washington.

Few days ago, many Michaels' stores have found have been hacked on their PIN readers/Credit Card readers at checkout. The Texas-based arts and crafts supplier has determined that the hacked could have been perpetuated between February 8 through May 6 according to the latest law enforcement investigation. The hack was initiated from PIN pads that are attached to credit card readers where customers use to key in their personal identification numbers upon checkout.

These scam artists were able to steal credit card information including personal PINs. The first discovery of the breach was at a Michael stores in Salt Lake City and Midvale in Utah. As a result, the arts supplier has removed more than 7,200 PIN pads from all its US stores.

I got interested with the story not only because the company is a customer of RGIS LLC, but because I wanted to know how in the world one can hack PIN pads in a busy store at busy checkouts. What is their modus operandi? Was there any collusion between scammers and employees?

Honestly, the trick is quite simple, but with calculated risk. 

A VeriFone PIN pad and Credit Card reader combo.
Image courtesy of VeriFone.

FIRST, there was a careful planning. These criminals pose as legitimate customers of Michaels. At checkout, they then observe several things such as the models/make of Michaels PIN pads, standard cable connectors, etc. Since many Michaels art products sell in less than a dollar range, they can come back as many times as they want and master how the plan works, how many seconds would it take to deinstall and reinstall a new PIN reader, when is the best time to to do it, and how to do it clandestinely without much effort and detection.

SECOND, scheduled activity. Scammers come back in packs of two or three posing as customers not knowing each other. The first act as the customer/installer, the second as a legitimate buyer, the third as customer/distractor. While the second or third scammer busy distracting the unsuspecting cashier with questions related to their purchase, it will take no more than 10 seconds for the first buyer to unplug the old PIN reader and replace it with a reprogrammable RFID chip when the PIN pad is not in use.

THIRD, leave without a trace. After a successful installation, scammers leave the store. Since many newer PIN reader models have built-in RF chips (meaning, it can read your RF-enabled credit card), scammers can easily install PIN readers with a reprogrammed chip. But just outside the store, with the use of a laptop, high frequency RF proximity scanner, and a customized software, they were able to monitor/ skim credit card transactions complete with PIN numbers for the installed compromised PIN reader from a vehicle within dozens feet away from the store.

A typical PIN Reader with a bult-in RF
technology. Photo Courtesy of VeriFone.

The idea that these scammers pose as repairmen may not be suitable in this case because to be able to that you need to appear as repairmen which include having tools and equipment, with uniforms and all that, not mentioning the fact that they need to obtain a clearance from the Store manager FIRST before any repair can be initiated which is not a good idea. Because the lesser people detect your activity, the better your chances.

That is the basic idea of a detectionless PIN reader skimming. But you know it is illegal, right?

Poor Michaels. But how many times I've heard from credit card companies, from POS solutions providers and software vendors that their systems are secured, and reliable. But when things are happening on the contrary, you realized that they themselves need some serious reality check.

The arts supplier is closely monitoring fraudulent transactions with credit card companies while advising all their customers to take precautionary measures. So, if you live in the States I just mentioned, and need to buy your next quilting, embroidery, or arts projects for yourself or for your kids from your local Michaels store, I suggest that you use cash for payment transactions...for now.

For more information on RF-enabled smart cards, read my previous post on RF technology and The ABC of Hacking


Cheers!



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World's Smallest Wireless Barcode Data Collector

The KDC200 Barcode Data Collector/Scanner. Image courtesy from KoamTac.

Nope. They are not mobile phones nor cigarette lighters, neither digital cameras or remote controllers. They are enterprise-grade barcode data collectors or scanners. Who needs the gigantic, bulky, heavy and outdated barcode data collector when you can use the sleek, zippo lighter-size and Bluetooth-enabled powerful Barcode Scanner?

The barcode data collectors are innovations from Koamtac, a Princeton, New Jersey company that specializes with data collection devices. These devices only weigh just 2 oz and the size of a cigarette lighter making them the world's smallest Bluetooth-enabled barcode data collectors. The KDC barcode scanner can be worn around your neck, carry it in a purse, or simply slide it in your pocket.

The KDC barcode Data Collector fits perferctly into your
palm. Image from CFCompany, Japan

Do not underestimate because of its size. The device is an enterprise solution for virtually any retail, supply chain, or data collection requirements. It tracks packages, couriers, shipments, deliveries, and identify your location worldwide.

It is used in retail stores for quick physical inventory, UPC validation and Scanning. It makes speedy access to patient's medical records, and insurance data. It is used to manage properties, visitor's identifications and scanning of driver's licenses, among others.

The first generation of this product, the KDC100 was introduced in the US in 2008 at the International Consumer Electronics Show in Las Vegas by the Princeton-based company. A year later, the second generation was released with the ability to read 2D barcodes with Bluetooth technology and supports the Honeywell's Adaptus Imaging Technology.

In 2010, the KDC300i was introduced as newer upgrade which supports iPhone, iPad, and iPod touch and can scan any type of barcode symbologies. This time the device gets smaller and weighs only around 1.2 oz. In 2011, Koamtac has released the newest version of the barcode scanner with GPs capability. The company also released new KDC firmware which supports Spec2.1+EDR and HID option which allow the user to toggle the iPhone soft keyboard so that both device works simultaneously.

All KDC line of barcode scanners support all mobile devices such as laptops, desktops, PDA's, Tablets,  Mobile Phones, and Smartphones. It supports virtually any mobile and desktop operating systems which include Google Android, RIM Blackberry, Apple iPhone/iPad iOS, Mac OS, Windows Mobile, all Microsoft Windows operating systems such as Win98/2000/XP/Vista/Windows7/Windows Servers, making it the first barcode collector that supports cross-platform.

Image from KoamTac

Read more enterprise news about KDC Data Collectors

KDC is a registered trademark and property of KoamTac, the innovator of the KDC line of Barcode Data Collectors. KoamTac, Inc. designs, develops, and manufactures barcode data collection devices and barcode scan modules.  Adaptus is a registered trademark and property of Honeywell International Inc; Android is a registered trademark and property of Google Inc; Bluetooth is a registered trademark and property of Bluetooth SIG.


Blackberry is a registered trademark and property of Research in Motion Limited; KDC and KTSync are trademarks of KoamTac Inc.; Mircosoft Windows is a registered trademarks and property of Microsoft Corporation; iPhone, iPad, iPod touch and Mac are trademarks of Apple Inc., registered in the U.S. and other countries.

Ricoh G700SE: The world's first barcode scanning 3rd generation digital camera

Did you know that the first barcode scanning app for a digital camera was developed not for Apple smartphones nor for Google Android neither for Blackberry but for a digital camera called Ricoh?

In 2007, Ricoh-USA has launched a geo camera, pretty much like any rugged digital camera but with one exeption: it has an advanced feature that scan barcodes similar to the way how your iPhone works now. That was Ricoh 500se, the world's first integrated digital camera with a barcode scanner and the first generation of digital camera of its kind. The camera was first introduced in 2007 at electronics and camera retail stores one year prior to the advent of barcode scanning apps available for smartphones. The first successful realtime barcode scanner for the iPhone was Redlaser 2.0 and was developed by Occipital (Now bought by eBay in June) was launched ONLY sometime in May 2009.

The first Ricoh 500SE introduced in 2007. Image from Ricoh USA

When Ricoh 500SE was first introduced, it has impressive features that include among others:

• Built-in mobile GIS mapping software
• a GPS-enabled camera
• Barcode scanning functionality that can read both coded images and barcoded assets
• Bluetooth and WiFi enabled for wireless image transmissions

Now, here comes Ricoh G700SE, the 3rd generation barcode scanning digital camera will be launched either next month or January next year. As a digital camera, I must say that it has more advanced features and benefits if we compare it with the rest of digital cameras in its category that are available in the market. It has better development partners now including Fabsoft Inc., Extraware Inc., PSIGEN Software Inc., GeoSpacial Experts LLC, Laser Technology LLC, among others. If you are looking for a durable, all weather digital camera that works as a barcode scanner too, and met your photography needs or image collection requirements, then Ricoh G700SE should be definitely in your list.

The latest Ricoh G700SE digital camera, on top of the ones I already have mentioned, also include the following additional features:

• Water. Dust. and Shock resistant
• Wireless LAN capability
• Works well with Windows XP and later
• Works with Mac OS X

Digital Camera Selection:

• Bestselling Digital Cameras in Amazon.com
  
• Hot New Releases in Digital Cameras
  
• Ricoh G700SE Digital Camera with Bluetooth and Wireless LAN Support can be pre-ordered thru Amazon.com and soon become available in your favorite electronics retail stores.

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Will Microsoft Scores big with Xbox 360 Kinect?

Image from Xbox.com

Just few days after Microsoft launched Kinect, the motion sensor add-on for Xbox 360 became an instant fame. Microsoft has made a bold prediction that Kinect could sell anywhere from 3 million up to 5 million units before the end of the year. I think that it is reasonable considering the more than 30,000 retail locations selling the system including giants such as Walmart, Target, Bestbuy, and Amazon.com.

How Kinect works

Kinect is a horizontal bar camera sensor that can be installed in front of your flat screen or TV monitor in the same manner how you install a Wii or PlayStation Move Bundle sensors. Kinect can be bundled with Xbox 360 OR as a separate purchase with Kinect Adventures! if you already have the Xbox system.

What makes Kinect differ from other systems such as Wii and PlayStation Move is its radical departure from the traditional controller-based to a hands-free gaming environment.  Kinect is a motion or voice-activated gaming environment where your moves or your voice acts as the interface. No more remote, no more buttons, no more workout pads, no more nunchucks, no more faus steering wheels, or the wand-like controller that you hold in your hands.

To better understand and appreciate this technology, consider watching the following video.

Duration: 6.2 minutes. (Won't take long, I promise)
Source: YouTube videos




The Kinect's camera does two things: it has a motion sensor which generates a moving 3 dimensional image of objects within its view and recognize human beings from those objects. There is no need for external controlers since the camera can accurately measures the "depth" or how far away your body movements (or coordinates), including head, torso, legs, arms at. Then the sensor chip processes those information in the near IR light making it a remote control-less gaming environment.

What makes the gadget more enviable is its ability to accept voice prompts from the user with its built in voice-activated functionalities. In fact, due to the great potential applications of the Kinect's software such as in robotics, educational research, and open source applications, a website is currently offering $3000 to anybody who could reverse engineer er... hack the drivers built into the Kinect system.

Now, Kinect systems  rank 8th and 9th in Amazon under videogame category.

Microsoft's product launches compared
I am not promoting Kinect system here, although I have been an Xbox user for couple of years now. The product looks very promising based on the avalanche of good reviews it earned for the last 7 days. In fact, I intend to buy one for my family this Christmas. But until I can personally test the new gadget myself, only then can I make an objective review of the company's latest product launch.

Remember 5 months ago when Apple launched iPhone 4 in June? The company took only 3 days  to reached 1.7 million unit sales and it was touted  as the most successful product launch in Apple's history. You can also read the story from here. Although it maybe unfair to compare between an entertainment phone with a gaming device, the question remains to be answered: Can Microsoft duplicate Apple's feat? Both companies are giants in spearheading great ideas in personal electronics where consumers like you and me shall judge which technology can better address our needs.

As most of us knew, Microsoft has been unsuccessful in product launches in the last 6 years. It failed with Zune. Then there was Windows Vista, a transitional fossil from Windows XP and Windows 7. And the belated launching of Windows Mobile 7 to an already saturated mobile systems world. But if Microsoft succeeds this time with Kinect, then the company remains a force to reckon in small electronics ingenuity at par with Apple, Sony, and Nintendo. And if that happens, maybe we can expect Steve Ballmer and his investors dance one more time with gusto.

For now, let's keep our fingers crossed and wait for results.


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• Read in details how Kinect works from the company that develops it.
• Did somebody hack the Kinect system yet?

          

The Best Barcode Scanners for Mobile Phones

Growth of Mobile Barcode Scanning
Mobile barcode scanning is a nascent in the mobile business but its usage is rapidly growing market at the rate of 700% in 2010. This is according to new data from industry leader ScanLife. The unprecedented growth rate for the last 12 months prompted some big players in the retail industry such as eBay, Amazon, BestBuy, etc., to invest millions in acquisitions and software development. The latest acquisition was eBay when it bought RedLaser from Occipital in June. Right now, there are literally dozens of these apps that are available as free downloads, or for a small fee.

In my previous post, I made a short list of these apps but I did not attempt to rank them as I would do now.

Thousands of reviews have been published with varying depth. Industry experts and end users agree that there are only handful of them that stood out and are worthy of serious consideration.

As software companies race to develop the ultimate and the best mobile scanning app, it will be on the hands of millions of users like you and me that decide the fate of these apps.



Here's the Top 5 List
The following apps command the best in terms of popularity, breadth of application, portability, and cross-platform usability. Here's the list in ascending order:

ScanLife

Developer: ScanBuy Inc.

Compatibility: Compatible with iPhone and iPod touch. Requires iOS 4.0 or later.

Price: Free Download

                            Rated: 4+

This is the only app for BlackBerry® that can read all major barcode formats including Datamatrix, EZcode, QR and UPC! It works with any BlackBerry® with a camera can scan a 2D barcode  Datamatrix, EZcode, QR  that you find on printed material, business cards or digital display. You can also go to www.scanlife.com on your PC to create your own 2D (QR) codes for free.

Barcode Reader

Developer: Shape Services

Compatibility: Compatible with iPhone, iPod touch, and iPad. Requires iOS 3.1 or later.

Price: Free Download

                            Rated: 4+

Barcode Reader is an accurate barcode scanner with product search in eBay, Amazon, Google Product Search and others. The app uses user's location to find product prices in nearby shops. Supports UPC, EAN-13, and EAN-8 symbologies. List of supported networks: TheFind.com, Worldcat.org, Walmart.com, Shopzilla.com, eBay.com, Google.com, Amazon.com, FatSecret.com. Barcode Reader works best with iPhone 3GS, iPhone 4, and iPad.

Pic2Shop

Developer: Pic2Shop

Compatibility: Compatible with iPhone and iPod touch. Requires iOS 4.0 or later

Price: Free Download

                           Rated: 4+

Pic2Shop works on all iPhones AND on all Android phones. Pic2Shop is supported by more than 30 countries around the world. It can perform online search, local search, libraray search, email. It relatively scan faster than the first apps I just mentioned. The app can read UPC-A and EAN-13.

Barcode Scanner

Developer: BahnTech Corporation
Compatibility: Compatible with iPhone, iPod touch, and iPad. Requires iOS 3.1.2 or later
Price: $0.99
                           Rated: "#1 Barcode Scanner in the App Store 2009 / 2010"


Supports Full-Auto Scan AND Manual UPC entry. It can scan UPC, UPC-A, UPC-E, EAN 6, and EAN8 (all commercial barcodes). The only app that uses "No Push" technology. Simply hover the camera on the barcode and it self-scans. The reception is even better than any handheld retail scanner. Some of the best features of this app are: It finds the lowest price every time. It supports world currencies such as USD, Euro, GBP, etc. It is being supported by the following online retailers: Yahoo Shopping, Walmart.com, BestBuy.com, Google Search, eBay.com, Newegg.com, Buy.com, J&R Computer, B&H Photo and more.

And the winners are:

RedLaser AND ShopSavvy


ShopSavvy

Developer: Big in Japan Inc.
Compatibility: Apple iOS (works on all iPhones, iPod touch, iPad), Android, Nokia, Blackberry, and Windows Phone7

Price: Free Download
Estimated Download: 7.5 Million
A Scanner Kit SDK is available for Developers

ShopSavvy provides you with price and inventory information from local stores such as Target, Walmart, BestBuy and from online retailers such as Amazon.com, Buy.com and TigerDirect.com.  More than 20,000 retailers submit their data to ShopSavvy covering more than 20,000,000 products. Also supports QR barcodes (2D barcodes).



RedLaser

Developer: Occipital
Compatibility: Compatible with iPhone and iPod touch (4th generation). Requires iOS 4.0 or later.
Price: Free Download
Estimated Download: 5 Million
Free SDK Toolkit is available for Developers

eBay has acquired RedLaser from Occipital. RedLaser has already been downloaded more than 5 million times, making it perhaps one of the most mainstream user-friendly barcode scanning apps on the market. RedLaser possesses QR code scanning capabilities there’s no need for app users to download a separate application. It scans UPC, EAN, UPC-E EAN-8, and QR  barcodes (2D barcodes). Compatible with world currencies such as USD, Euro, and GBP. It searches prices with Google Product Search, The Find Product Search, eBay, and Half.com

Bakodo App Turns iPhone to a Barcode Reader

 What is Bakodo and how it works
Do you want to know if the retail price of the product you are about to buy is worth it? Are you a mystery shopper? Do you wish to compare prices of the same product while you are in a store using an iPhone, an iPod touch, or an iPad?

You can transform your iPhone or a compatible gadget, into a live barcode reader and a comparison device. Bakodo Scanner, an iPhone app from Dedoware/Bakodo Inc, made it possible to turn your device into a barcode reader. The application, which according to reliable reviews, is among the best applications available on Apple's AppStore. Contrary to its name, Bakodo is not actually a scanning app if we mean scanning as a method of reading data using laser technology. It is more like camera capturing.

Here how it works: Instead of using the laser-based barcode reading which are typical for inventory counting and POS application, it utilizes the "point-and-shoot" method of digital capturing identical among cellphone and digital cameras. Simply open the app from your device, shoot a desired barcode, choose from any of the options, and get the desired result in real time.

Once the barcode image has been captured, Bakodo can search a database of more than 20,000 retailers. With the app,  you can view product details, compare prices, and which store nearest you offers the best price. You can even search from different online stores such as Amazon.com, Bestbuy.com, Google Product Search, ShopWiki.com, Snooth.com,  and save them to your device or email them to anybody. Just like any standard POS barcode scanner, it reads different barcode symbologies such as UPC A types (grocery barcodes), UPC E, EAN 13(books, DVD barcodes, etc.) types.

Download Bakodo
The Bakodo app is FREE and it is compatible with the new iPhone 4G or any Apple device that has iOS 2.11 and higher. If you don't have Bakodo but met the iOS requirement, you can download it from AppStore. There are other competing apps that performs similar and comparable functions:

iDecoder
Q Reader
Z Scanner
Shop Savvy*
iCody Barcode Scanner
Barcode Scanner Pro
Barcode Ninja
Redlaser

To search and download these utilities, and tons of other apps, visit the AppStore utilities page

*There is a Linux-based Shop Savvy application that runs under Google Android. The application has been available since September 2008. Shop Savvy is not available for Windows mobile yet. For a detailed story, read the latest update here.



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