There has been some oblique discussion about phishing and MIM attacks.

MIM attacks are a concern, in particular MIM attacks where the end user machine 
is compromized through a trojan are a very big concern. There is also concern 
about users typing passwords into entry forms presented by a MIM (classic 
phishing).

The use of dynamic credentials (One Time Passwords) does not protect against a 
MIM entry form attack but it does have a major impact on the criminals.


Dynamic credentials can only be used once. That means that there is an upper 
bound on the fraud loss when phishing takes place since the number of 
transactions is limited. 

It also means that it is much harder to resell the credentials on a dumps 
market. A carder who buys 10,000 credit card numbers can test them out in a low 
value transaction such as buying a domain name before they go on to attempt a 
riskier high value transaction. Dynamic credentials can only be used once, the 
perp is put at much greater risk.

The other advantage of dymanic credentials is that they are self healing. It is 
not necessary to reissue the token unless the customer actually lost it.


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