Square credit card processing might not be so secure

I just read an article where a couple of researchers found it pretty easy to commit fraud using the square dongle card reader. Square is now working on a encryption system. I have no idea how they are allowed to process credit cards with out even doing something as simple as encrypting the card data.

The article indicated that Square didn’t see this as a significant threat as there are easier ways to commit credit card fraud. Somehow that doesn’t make me feel better. I’m sure they will close the security threat now posed but in the mean time I would be very wary of using the Square credit card processing system.