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Magstripe readers have been within the reach of any reasonably-clever fraudster for a long time. Attaching them to an iPhone and using audio modulation for the signal doesn't magically open the floodgates to card skimming and duplication.

This isn't even as big a threat as, say, making people acclimated to the idea of joining open wireless networks at coffee shops -- card skimming at least requires physical access to the card for a few seconds.



> Magstripe readers have been within the reach of any reasonably-clever fraudster for a long time.

If today a beggar extended his card reader-equipped iPhone to you, would you swipe? If this company takes off, in a few years you very well might.

Payment methods which give third parties permanent access to your wallet are bad.




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