Some tips on avoiding point of service fraud

The Superior East Detachment of the Ontario Provincial Police has issued a warning along with some tips on how to avoid being a victim of credit card fraud involving the manipulation of point of sale terminals (POS).

Suspects can alter the total amount being charged to a credit card and, after the total amount is changed, can navigate the terminal to the point where the card number can be entered manually. The stolen number is then entered and charged the full amount. 

After completion of the transaction, the suspect then tells the cashier that they have been overcharged and then tries to use the card they pretended to pay with, knowing it will be declined. Merchants tend to then agree to refund the "overcharged" amount to a different credit or debit card.

That leads to the suspect leaving the store with the merchandise and the "overcharged" cash in their account, which has been charged to a third party's credit card.

Some tips on preventing and detecting POS terminal manipulation frauds include:

• familiarize yourself and your staff with the POS terminals used by your business
• password protect processes like manual card entry and changing total charge amounts
• if a refund is declined, look closer at the initial transaction prior to refunding a different credit or debit card
• if you suspect someone is in the process of defrauding your business, or has already succeeded in doing so, please report it to police
• the suspect may take advantage of a business being busy in order to pressure the cashier to get the transaction completed quickly