Types Of Credit Card Fraud (Part 2)

category: News posted: August 11, 2016
Types Of Credit Card Fraud

In the last article, we went over four different types of credit card fraud and how companies can prevent scammers from using those dirty tricks on them. However, that’s only the tip of the proverbial iceberg. Many other forms of fraud exist, and you may have even heard of some of these in the past. Here are five more forms of credit card fraud that you may have heard of, or even encountered in the past.

  • Stolen Credit Cards – This is the oldest way that fraudulent charges end up on people’s bills. Simply put, a thief may end up stealing a credit card and going on a spending spree with it. The easiest way to prevent a fraudster from doing this is to ask for ID before they charge anything to the card in question.
  • Social Engineering – Social engineering is using social expectations against a company. If you’ve been having “maintenance workers” wanting access to your terminal, or if you have been dealing with very fishy emails from your merchant services company, you’re dealing with a social engineer. The easiest way to avoid having terminals being compromised by these fraudsters is to ask for verification.
  • Malware – Scammers can install malware that sends information about credit cards to hackers, and it can even be done on terminals. Thankfully, prevention can stop this in its tracks. Most terminals will have antimalware software installed, but in some cases, it can be obsolete. In order to keep your terminal and POS safe from hackers, the best way to prevent malware is to regularly update your malware protection software. A quick call to your merchant services provider can help you out with this.
  • Wifi Hacking – Some highly advanced hackers can hack a terminal via wi-fi. The easiest way to avoid this is to have password protected wi-fi, or to keep your terminal out of wi-fi reach. Sadly, it’s very difficult to handle a terminal that has been hacked through this method.
  • Employee Leaks – In major data breaches like the one that happened to WalMart, it was often employees who were the ones who gained access to the terminal, downloaded card information, and caused the chaos. Obviously, actually having official access to a terminal should be a privilege. Make sure you know who has access, and also make sure that they aren’t disgruntled employees who might seek out revenge.

Basically, security experts have their work cut out for them. By making a strong effort to avoid all different forms of credit card fraud, we can all make a difference. Want to learn more? Call Red Payments for a consultation.