Via BusinessInsider, Verifone Trashes Square, Saying It Has "A Serious Security Flaw":
Today is a wake-up call to consumers and the payments industry. Last year, a start-up named Square introduced a credit card reader for smartphones with the goal of making it very easy for anyone to accept credit cards through a mobile device. Seems like a great idea, but there is a serious security flaw that Square has overlooked that places consumers in dire risk.
In less than an hour, any reasonably skilled programmer can write an application that will "skim" – or steal – a consumer's financial and personal information right off the card utilizing an easily obtained Square card reader.
So what? Anybody you hand your card to could be putting it through a skimmer. It doesn’t matter if it’s a Square user, the 7-11 clerk, or the waiter at your favorite restaurant. There’s no Square-specific risk here. The only story is that Verifone is scared to death of the competition.