Square -- new frontiers in fraud

[jducoeur]

Just got the pointer to this video about SquareUp, a new gadget/service that turns your iPhone into a credit card reader, so you can accept credit card payments yourself.

• First reaction: that's immensely cool and useful, and a major step towards the cashless economy.


• Second reaction: I don't have enough fingers and toes to count the number of new kinds of crime this is going to facilitate.


• Third reaction: ... and of course, this *could* just be a clever scam to get lots of bank account routing numbers quickly and easily, and then run for the hills.

I'll be very curious to see what happens...

Comments

[crschmidt.livejournal.com]

The VC firm behind it looks legit. I wouldn't be concerned, personally, about signing up (if they had open signups, which they don't).

[metahacker.livejournal.com]

Who knows...it might even force credit card vendors to have some sort of security surrounding credit cards.

[laurion]

I understand the rogue thought behind #3, but I don't think it likely simply because there is more money to be had in doing #1 right. More money, legit money, better business plan.

#2? Oh yeah. I can see restaurant waiters taking your card, scanning it on their iPhone and then processing your bill per usual. A high tech variation on an old fraud already out there.