US retailer Hancock Fabrics is warning customers that PIN pad units at several of its stores were stolen and replaced with "visually identical, but fraudulent" units last year, putting card data at risk.
This was an accident waiting to happen. It is bizarre that only one US processor to my knowledge Heartland, has introduced encryption at the POS level to prevent this type of occurrence.
Ironically I patented a POS device that included a GPS chip so that geo location could be used as part of the transaction authorisation process, so transaction could only occur from approved locations in 2000. There is always a trade off between hardware
cost and functionality, and the ability to open a retailers wallet to pay for additional features, but with the Heartland system also resolving retailer PCI issues, there may be a change already happening, which this incident may accidentally accelerate.
Competitive (base + bonus)London, UK
© Finextra Research 2013