US Secret Service calls ATM System Unsafe

I found this interesting article on Bob Sullivan's blog. It talks about the vulnerabilities of the ATM and it's corresponding network. After working on a few of these projects I can say that these are very real threats. Visa seems to agree but they feel that the probability is low. However this new study may say something different. More on Bob's blog.

A U.S. Secret Service memo obtained by MSNBC.com indicates that organized criminals are systematically attempting to subvert the ATM system and unscramble encrypted PIN codes. (Will Burgess / Reuters file)

Researchers who work for an Israeli computer security company say they have discovered a fundamental weakness in the system that banks use to keep debit card PIN codes secret while they are transported across bank networks – a flaw that they say could undermine the entire debit card system.

The U.S. Secret Service is investigating the matter, and MSNBC.com obtained a memo compiled by the agency that indicates that organized criminals are systematically attempting to subvert the ATM system and unscramble encrypted PIN traffic.
The report has ignited a debate within the banking industry, with many financial industry experts downplaying the seriousness of the flaw and outside experts divided on its implications. But there is no disputing the impact that such a hack would have if successful.