Yesterday, in the middle of our business day, we suddenly could not run credit cards from our corporate office. The response code we received back indicated a bad terminal id associated with our merchant account.
Our merchant bank is going through a transition to a different processor and I’ve been dragging my feet to make the change as our custom software needed some things fixed before I was willing to make the attempt (besides having 20 other irons in the fire that are all needing some level of resolution before I fix something that’s not broken). This made me fear that they had taken some action to force the transition, or had just made some mistake. I was not a happy camper.
I called our “Relationship Manager” (I’ll call him Frank), got voicemail. Called his cell phone, got voicemail. sigh I had a doctor’s appointment in half an hour, so I grabbed my laptop and left, all the while playing through alternatives in my mind so I could recover from this disaster with a minimal impact.
As I drove to the appointment I went through several possible recovery scenarios with our company president. If Frank was able to call back with a resolution within a half an hour, we could wait. Otherwise we would have to punt to one of my other options.
Frank called. He didn’t know what had happened but assured me it had nothing to do with the transition. He would check in to it and call me back.
I was called in to my appointment from the waiting room.
About 20 minutes later, as we’re rapping up discussion about how to try to get my cholesterol levels where they’re supposed to be, I was saved by a phone call. Frank called back to tell me that our TID had been suspended due to fraudulent activity. Apparently “carders” will randomly throw together numbers in attempts to find valid merchant numbers + terminal ids.
Here’s all that’s needed to hack a VID is to acquire some information that’s common to all accounts, and a series of about 20 numeric characters, many of which can be pre-determined. Using a standard distributed virus hack, every possible combination could be tried very quickly with no single IP address to flag for failures. If they phished the merchant it then it was even easier.
This all brings to mind a quesiton. In a world where we’re required to use ssl encryption for user transactions, why are we still using these short merchant it/terminal id numbers? Why isn’t this using cryptographically signed and authenticated certificates?