Users notified against counterfeited payment card terminals

You are here: News > News > Users notified against counterfeited payment card terminals

» IT Security NEWS

» 17 March 2010

Hancock Fabrics cautions the customers of the increasing numbers of fake payment card processing terminals in various locations within their chain stores. These units are used to steal private and pertinent financial information of the consumers accessing their stores.

Financial loss may ensue from stolen data

In Hancock Fabrics’ letter to their valued customers, they explained the event that took place in the months of August and September of the previous year. According to the letter, very similar PIN pad units were used as a forged substitute to the pilfered personal identification number pads of the company. With these bogus number pads, the account information and PIN numbers of the customers who accessed using these affected spots might have already been stolen and used by the criminals.

Stolen data by the fake credit card terminals may possibly include the following: name on the card, card number, expiration date, and even the PIN of the payment card if it was keyed in one of the counterfeited stations. Hence, as prevention for future problems, it is best if the consumers evaluate the data on the account statements and credit reports that they receive.

Forgery happens in real time

A concrete and up-to-date example of the fake credit card terminal is the hardware switcheroo. This works by incorporating a certain tool in a terminal and this will then tap the account information of the many customers.

Three Bulgarian men were found to be guilty of embezzling about 137,000 US dollars from different banks in Massachusetts. These crooks connect a particular tool in the automated teller machines of the said banks. In the end, these men were given a sentence of 42 to 57 years of imprisonment.

Similar incident happened in 2007 wherein wicked individuals slipped in a bogus device in the payment terminals at Wendy’s fast food restaurant in Canada. And about some time ago, the same situation was reported to the Utah police, wherein a related tool was also used on the gas-station pumps and the offenders were able to take away 11,000 US dollars.

As of the present, PIN pad units in the Hancock stores were replaced and the machines were also advanced. Automated systems were also improved in order to avoid any incidents of tampering.

You may browse through our website for more information: About SecPoint, SecPoint Products, and SecPoint Awards.

Click Here For Web Shop

Reviews of SecPoint.com