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There are same crazy nerd which enjoy themself (I don't know why) to decrypt credit card data coming off of a magnetic stripe scanner: https://www.parthenonsoftware.com/blog/how-to-decrypt-magnet...

But I agree with you, an un-encrypted reader of magnetic stripe is very easy to find or build. The security is like a door in the desert.

I actually read your thing a long while ago too! I took it a step further, and made a small coil and amp, and played the recorded data back through the coil, and placed the coil next to a one-track card reader. It actually worked, which was neat.

I remember requesting a stripe reader when I first saw something about them just spitting out the info, and by the time I got it they were already encrypted.