Hi Everyone,
This is our monthly InfraGard Fraud Alert developed by Eleanor Spring of SAFE (Spring Action Fraud Elimination). Eleanor is a Certified Fraud Examiner.
January 2011: POA (Point OF Sale) Skimming Devices Target Card Readers
Merchants are vulnerable to fraudsters attaching magnetic strip skimming devices to the merchant’s own point of sale systems. Simply replacing a merchant’s POS terminal with one modified by the fraudster to capture a cards magnetic strip and PIN data is all that is needed. A recent study concluded that eighty percent of card data breaches were due to attacks on POS devices.
According to the Secret Service, the crime is responsible for about $350,000 of monetary losses each day in the United States and is considered to be the number one ATM-related crime.
Global ATM Security Alliance estimates that skimming costs the U.S.-banking industry about $60 million a year.
Example: Bank ATM machines are converted to steal identities from banking customer
How is that accomplished? A false card slot is attached over the original card slot; a pamphlet holder carrying a hidden micro-camera is attached to a nearby wall and angled to view the monitor as well as the keypad and transmits wireless photos of them up to 656 feet away.
Example: A Stop & Shop Supermarket in Quincy, Mass. said that some of its customers’ credit and debit card numbers were stolen due to tampering with EFT pin pads at two check-outs in two Rhode Island stores.
How not to become a victim of POS scams.
Survey your surroundings:
Before making a withdrawal at an ATM,
take a look at your surroundings. Watch for any sort of suspicious
activity and, if anything appears to be out of the ordinary, or if the
ATM is obstructed from view or poorly lit, leave the area and try
another location.
Keep an eye out for terminal tampering:
If you suspect the ATM or POS terminal you are using has been altered, go to another
terminal.
Signs to watch for include unusual-looking card slots, plastic overlays on the PIN pad, or the appearance of damage.
You can review the video on our web site at: www.nym-infragard.us/cms.
Stay Alert!
Your NY InfraGard Team
