From: Mike Ingle <MIKEINGLE@delphi.com>
Date: Sun, 9 Jan 94 20:35:04 PST
To: cypherpunks@toad.com
Subject: Crypto not being used where needed
Message-ID: <01H7HW21PVZ68WYKRH@delphi.com>
MIME-Version: 1.0
Content-Type: text/plain


At CES someone was showing a cellular credit card machine. It had an
antenna and a regular card reader, and was battery powered, so it could
be used anywhere. The machine was designed to be used in taxicabs,
at swapmeets, and wherever there were no phone lines available.

I asked the rep about its security - does it use encryption? No, it does
not use encryption. It sends your credit card number and expiration date
over the cellular link in clear. Most credit card machines use low-speed
modems which are trivial to intercept. This one is probably no exception.
Here is a case where DES is badly needed and not being used. If this
machine becomes popular, thieves will be trailing taxicabs with scanners
and tape recorders.