The Payment Card Industry takes great care to ensure that the security of point-of-sale equipment meets the highest standards; however it is not sufficient to rely solely on this security to protect the cardholders’ details from being compromised at the merchant location. Additional vigilance is necessary to increase the security provided by the terminal itself.

Defrauders use several strategies to read credit and debit card magnetic strips. For example, skimming is the transfer of data from a customer’s card to another source for fraudulent purposes. Cloning occurs when electronic equipment is inserted into the terminal in order to capture the card information, allowing them to create false cards to perform fraudulent transactions.

The skimming/cloning equipment is small and often difficult to identify. Typically it is hidden within the point-of-sale terminal (PST) so that neither the merchant, nor the cardholder knows that the terminal has been compromised. In addition, criminals may on occasion insert a very small digital camera to record the PIN being entered by the cardholder.

Card fraud affects everyone in the payment chain. It is important that the cardholder feels comfortable using credit and/or debit cards. Cardholders quickly learn where a merchant has been compromised and avoid using that location again. Protecting the community from fraud is a priority for the Owen Sound Police Service. Their “Stick it to Crime” prevention plan protects both the customer and merchant.

Program Outline:

Identity theft and fraud by means or skimming and card cloning is becoming a large problem. As part of a prevention plan, point-of-sale terminals (PST) at local businesses feature a security seal which is located on the side of the terminal. If the PST is opened or an attempt is made to remove the seal, the seal is destroyed. The seal prevents the insertion of cloning systems into the terminal as well as identifying when a PST has been replaced with a false terminal used for cloning. The security seals are managed by Owen Sound Police Service with the cooperation of local business owners.

How it Works:

Secure point-of-sale terminals (PST) can be identified with a police issued security seal. The security seal binds pieces of the PST together so that it is impossible to open the PST without damaging the seal. One security seal is assigned to a PST. Each security seal is registered with Owen Sound Police Service and verifies that the PST has not been tampered with. The Owen Sound Police Service have record of the business, the serial number of their PST and its corresponding security seal number. This allows them to know if a PST has been replaced with a clone system. Storekeepers will contact the Owen Sound Police Service when a seal has to be changed for reasons including wear and tear, a replaced terminal, or tampering. A reminder to check the seals will be sent to partners, and it is up to the business managers to monitor the condition of their own seals.

What to Look For:

The security seal is red in colour and has the Owen Sound Police Service logo on it. Printed on each security seal are the words “USE CAUTION IF SEAL IS DAMAGED”. Each seal bears a different 6-digit identification number, which is linked to a business as well as to a point-of-sale terminal serial number.

PHOTO OF SEAL

When the security seal becomes worn, or if someone has removed or tampered with it, the word “VOID” appears. This visual aid indicates that the terminal may have been tampered with or may have been opened to permit the installation of a card cloning device. If a sticker is missing or damaged, there may be a problem. In this case the terminal will be inspected, and if secure, a new security seal will be issued.

PHOTO OF DAMAGED SEAL

Tips:

• Chip and PIN (personal identification number) cards make cloning near impossible. Inquire at your personal banking branch to obtain your own chip and PIN card.
• Cover up the PIN pad as best you can when putting in your PIN numbers.
• Never let your credit or debit card out of your sight or hands.
• Use caution if using a machine without a security seal or with a seal that says VOID, which may indicate tampering .

Mission Statement:

The Owen Sound Police Service “Stick it to Crime” fraud prevention operates in cooperation with local business and cardholders. The identification of secure point-of-sale terminals, along with an indication of whether a terminal has been tampered with, will help reduce theft and fraud related to credit and debit card cloning.

For More Information:

Constable Chris Hartley, Community Service Officer
Owen Sound Police Service
Phone: 519-376-1234 Ext. 142
E-mail: chartley@owensoundpolice.com

• Click here for July 19, 2010 Media Release