Point of Sale Clone Fraud Activity

Point of Sale Clone Fraud Activity

Point-of-Sale Fraud Alert

Recent incidents in the U.S. in which criminals are committing fraud through processing fraudulent return transactions. As part of the fraud scheme, criminals obtain Point-of-Sale (POS) devices—either from an acquirer or agent while posing as a merchant, from online resellers or auctions, or through theft—and program the POS devices with the credentials of a legitimate merchant, thus effectively cloning the unsuspecting merchant’s actual POS device. Criminals use the cloned POS devices to complete returns to gift cards, often in the range of $2,000 – $6,000 per transaction. After the returns are posted to the gift cards, the cards are cashed out at ATMs. Criminals prefer gift cards and in some instances debit cards.  These products fund rapidly, allowing fraudsters to get their hands-on cash immediately.

What can you do to protect yourself?

  • Always verify anyone calling you posing as your merchant provider
  • Monitor your transactions often, especially credits
  • Make sure your terminal or POS doesn’t allow credits without a corresponding sale
  • Educate your employees
  • Never let anyone other than your merchant provider, touch your terminal or Point-of-Sale System
  • Change passwords often and use caution if you are working remotely

As a business owner, you can never be too cautious. These crimes happen primarily on the weekends (especially long holiday weekends).  Criminals will choose to take advantage of the operating hours of the merchant and financial institutions.  Protect your business this holiday and throughout the year!

Memorial Day Credit Card Skimmer Warning 

Memorial Day Credit Card Skimmer Warning 

 

New Credit Card Skimmers found inside card readers at gas pumps at many 7-11 stores 

 

Look for the red tag on the pumps or go into the store to pay. Some 7-11 stores have installed temporary locks on pumps until permanent locks arrive. 

 Fraud Facts

Florida is number one in the country for crimes related to fraud, mainly because dozens of people are being targeted at the pumps by skimmers a day.  

This year alone, 561 skimmers have been found at gas stations in the State. Due to this growing number of skimmers, State Leaders are making fraud prevention a priority. 

The Florida Department of Agriculture and Consumer Services is pushing gas stations in Florida to install encryption readers by November of 2020. The encryption readers will scramble your cards information so that your number can’t be grabbed by another device to steal your information.  

Tuesday, the Lee County Board of Commissioners unanimously passed the Fuel Pump Security Ordinance. Both Charlotte County and The Cities of Cape Coral and Punta Gorda have ordinances in place already to protect you at the pump.

Five Tips to Fight Fraud

Here are five tips for consumers to avoid credit card fraud by gas pump skimmers, listed by the Florida Department of Agriculture and Consumer Services: 

  • Avoid using pumps that are open or unlocked, have had the tamper-evident security tape cut or removed, or otherwise appear unusual.  
  • Use a credit card – not a debit card: If a credit card number is skimmed, you’re protected by the card issuer’s zero-liability policy – but a stolen debit card number could be far more damaging.  
  • Pay inside, with cash or credit, instead of at the pump 
  • Choose gas pumps closest to a physical building: Don’t use gas pumps out of the attendant’s line of sight, such as those around a corner or behind a building. 
  • Check your card statements and sign up for fraud alerts 

 

NBC-2 Related News Story 

Critical Credit Card Terminal Updates

Critical Credit Card Terminal Updates

Is your Credit Card Terminal causing you to lose valuable transactions?  It may be time to update the programming in your terminal or even time to look for a new solution.

Ingenico Credit Card Terminals

The clock is ticking on the Ingenico ICT220 and ICT250 terminals. We recommend that ALL Ingenico devices be updated to the new Trust certificates. Certificates begin to expire in May 2019 on Models V2 and older.

If the Trust certificate expires before it has been updated, your equipment will need to be replaced.  The download of the new file extends the Trust Certificate’s expiration date to the year 2029.

The certificates in these terminals are nearing expiration, and it is only a matter of time before you will experience issues or lose processing capabilities altogether. It is imperative you update these terminals now.

Pax Credit Card Terminals

Your terminal may need an update to accept debit cards. The new EMV chip and PCI Compliance regulations allow the card issuing Banks to determine whether a PIN number is required.  The merchant and/or cardholder will no longer be able to choose how the transaction is processed. Entering a PIN is always the most secure method for processing credit card transactions, and is the best way to verify the transaction is not fraudulent.

Credit Card Terminal Updates or a new POS System will Save Down Time and Money!

Downtime and outdated equipment can cost your business dearly.  Make sure you update your credit card processing terminals when needed.   If your Merchant Processor hasn’t reached out to you to update this certification, call us, and we will be happy to help.

It may even be time to think about replacing your current terminal to a smart terminal to collect data or even a POS (Point of Sale System). A POS System can track your inventory, keep time and attendance for your employees, and also track customers and their spending habits.  The newer POS systems can calculate and pay sales tax and ping you…yes ping you, when someone is opening a cash drawer without a sale occurring. Imagine the possibilities, increased profits and the time you will gain with these new simple to use systems.   Isn’t it time you consider what a new POS system can do for your company?

 

Don’t Fall Victim to Employee Embezzlement

Don’t Fall Victim to Employee Embezzlement

Courtney Wells, a 49-year-old woman in Connecticut admitted to embezzling over a half a million dollars combined from her two positions as a trusted bookkeeper.  Appearing as a trustworthy employee at her job as treasurer of the Southington Lacrosse Association, she gained exclusive access to the association’s debit cards and the bank account.  Authorities believe she had stolen approximately $100,000 from this position to fund personal needs such as concerts, traveling, or shopping.

Additionally, Wells embezzled $375,000 from her other job working as a part-time bookkeeper at Jones Engineering. She put this money towards a partial refund of what she had stolen from The Lacrosse Association.  Wells finally surrendered herself to authorities according to Southington, CT police. Her warrants included first-degree larceny, second-degree money laundering, and first-degree forgery.  There are steps you can take to help secure the well-being of your company.

Article source: https://fox61.com/2019/01/10/woman-pleads-guilty-to-stealing-from-youth-sports-group/

5 ways to protect your company from employee fraud:

  1. Install a POS System for Accountability
  2. Monitor your company books and the back office of your POS System on a regular basis
  3. Sign up for bank and credit card alerts when purchases are made
  4. Perform thorough Background Checks on all employees and independent contractors
  5. If you become a victim, prosecute the employee!

A criminal background screening provides a thorough insight into a potential hire’s criminal history.  Not only does PCI 12.7 warrant a background of employees dealing with multiple forms of payments, but also taking proactive steps to reduce your risk of employee theft and possible violence in the workplace makes good business sense.   Your company’s future is in your hands and now more than ever we need to be watchful of who we are letting in the door.

According to PCI…that dreaded term…

12.7 Screen potential personnel prior to hire to minimize the risk of attacks from internal sources. (Examples of background checks include previous employment history, criminal record, credit history, and reference checks.)

Article source: https://fox61.com/2019/01/10/woman-pleads-guilty-to-stealing-from-youth-sports-group/

Data Security Credit Card

Data Security Credit Card

shutterstock_3502966Data Security Credit Card

Is your Data Safe?  What about your customers?  Unknowingly exposing your customer’s credit card, or any data could put you out of business.  With Identity Theft and Hacking at an all-time high. You must put safeguards in place by locking down data all payment entry and access points.

5 Things you can do today:

PCI isn’t just about protecting the data in transit. It is about protecting the environment where the data resides.

We Make Security Easy. Send Your Inquiry Today