Title is bit misleading. Avenues for fraud are USING Square. The security flaw is IN the design of Credit Cards. It's clever that you can plug a Square into a t

Title is bit misleading. Avenues for fraud are USING Square. The security flaw is IN the design of Credit Cards. It's clever that you can plug a Square into a tape-recorder, record a card and play it back to your iPhone. I don't think this is a flaw in Square, it's just the commoditization of credit card readers. Even if Square used an encrypted dock-connector the magnetic reader is still the equivalent of a tape-reader head. The trick could still be done albeit with some light soldering.