Fraud and abuse of credit and debit cards are increasing day by day and you must stay aware to protect yourself. Ingenico Telium series terminals are programmed to have all the latest security systems in place but there is no replacement for checks that can be put into place by the merchants using these terminals. Here are 4 tips to help you protect your business from debit and credit card fraudsters.
1) Add a password
A critical first step for a merchant when you receive your terminal from the factory is to program in a new password. Most terminals arrive direct from the factory with pre-programmed passwords, which can be very similar across all models. Keep this in mind, it is very common for fraudsters to know the default passwords and hope that most merchants won’t know to change it. The simple task of changing your password to something customized by you can remove virtually all the risk of terminal based fraudulent transactions.
A fraud artist will attempt to cancel a sale on your terminal and process a different kind of transaction. This gives them access to restricted functions where they can appropriate funds. With a custom password, the potential fraudster would have to know your secret password in order to commit their intended fraud.
Don’t risk a factory set password, the first rule of outsmarting a fraudster is to change your default password. Fraudsters will cancel a sale and try to process a different transaction type, such as a refund, using the default password to access restricted functions. When you set a custom password, potential fraudsters would need to know your unique, individual password to perform these functions, rather than the generic, well-known default passwords.
2) Pay attention when the terminal is being used
A common trick of most fraudsters is to distract you when they are attempting to use their card. This attempt at distraction will sometimes mean that they are trying to quickly cancel the transaction being processed and access your terminal to obtain a refund or void the sale. They can move so quickly you may not notice that they are punching in a variety of numbers and not just their pin number. Always watch the customer to ensure that they are following the standard protocol for entering their information and are not attempting to access the system for other purposes.
3) Accept only Chip cards
Chip cards are easily one of the best ways to prevent fraud. These cards shift the liability for their use directly to the bank issuing them instead of your business account. If the customer claims the chip card can only be swiped, don’t forget to verify their identity with proper I.D., or tell them you cannot process their transaction without a chip card.
4) Always check your receipt
After the transaction goes through and the receipts are printed, don’t forget to double check the transaction to make sure that the receipt matches what you processed. Ensure that your staff is also checking the receipts upon completion of the transaction. Sometimes a refund or change of transaction can be missed unless the receipts are checked.
By taking control of your terminal and following these 4 tips, you can substantially reduce the chances of becoming a fraud victim.
Don’t forget to call Royal Debit at +1 (416) 986-3342 if you want some assistance in protecting your business from terminal fraud.
