In a recent report by the American security company AmbironTrustWave, 62% of security breaches come from the food industry. In fact, fraud incidents are more likely to occur when customers use their Top POS Systems at the merchant or restaurant location versus through online purchases. This breach represents billions of dollars lost – both on to the merchants, customers, and financial institutions also as indirectly from severed business relationships, bad publicity, and negative word-of-mouth.
Credit card fraud and security breaches
A security breach is when highly personal information from a MasterCard is stolen. The magnetic tape of MasterCard stores this data, including the cardboard holder’s name, card number, and expiry date. The info is stored within the magnetic tape because the knowledge is required to process a sale. After a transaction has been processed, there’s no need for Top POS Systems to store the sensitive data from the cardboard. However, some older terminals do. The info theft occurs from the terminal that processed the transaction. This enables hackers to steal the info from unknowing merchants through their unprotected systems.
Another means of acquiring MasterCard holder data is through skimming. Skimming is where a tool is attached to a payment processing system, and it allows for tracking of all the MasterCard information.
With hackers and thieves on Top POS Systems of such important and sensitive information, the result’s that billions of dollars are lost to fraud and fraud. The AmbironTrustWave audit reported that during a restaurant security breach, the perpetrator could get information on 40,000 cardholders. During a skimming fraud, information from 200 cardholders is often obtained.
Who is liable for security breaches?
YOU – the merchant. Albeit you would possibly be the unsuspecting restaurant owner who has fallen victim to a hacker’s criminal actions, it’s ultimately your responsibility to secure your business and Top POS Systems against this.
Since some business owners still are negligent in protecting their customer’s credit card information and security breaches are getting more of a drag, the credit-card companies have begun to work together to line standards for the industry.
The new security standards are getting to affect all merchants, regardless of industry and size of multinationals. What this suggests for foodservice providers is that everybody from small mom-and-pop diners to large national chains must abide by the credit-card standards – the Payment Card Industry (PCI) Data Security Standard.
PCI details the standards for all merchants on the way to securely store and handle credit-card information, because it applies to all or any card brands, including Visa, Mastercard, American Express, and every one financial institution is processing credit transactions. If a merchant doesn’t adhere to those security standards, they’re liable for any breaches and are fined large amounts, a number of which have exceeded $100,000.
All businesses are going to be required to become PCI compliant by 2010. There are several elements to become compliant – one among which is using PABP (Payment Application Best Practices) validated systems. Systems that are PABP certified have undergone rigorous auditing of their payment processing system. Merchants can work with their Top POS Systems providers to make sure they’re implementing the processes correctly; however, the last word responsibility is on the merchant.