19 February 2018
Visit www.avoka.com

Criminals install fraudulent terminals at US retailer

16 March 2010  |  10321 views  |  1 card reader

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.

In an open letter to customers the firm warns the scam, which occurred between August and September last year, has provided crooks with access to names printed on customer payment cards, card numbers and expiration dates and PINs.

Hancock Fabrics says reported incidents of fraud have been "limited" but says customers who shopped at the store last Summer should check their account statements.

The retailer is working with state and federal authorities and is replacing all PIN pads as well as installing an automated system to monitor them for suspicious activity.

Comments: (1)

Nick Ogden
Nick Ogden - ClearBank - London | 17 March, 2010, 08:45

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Skimming attacks push up Australian card fraud

Skimming attacks push up Australian card fraud

09 December 2009  |  11162 views  |  1 comments
Restaurants sue POS vendor over data breach

Restaurants sue POS vendor over data breach

26 November 2009  |  11724 views  |  0 comments
Fraudsters compromise Perth retailer terminals

Fraudsters compromise Perth retailer terminals

07 October 2009  |  7105 views  |  0 comments
Toys R Us shoppers hit by Eftpos skimmers

Toys R Us shoppers hit by Eftpos skimmers

16 December 2008  |  10729 views  |  1 comments
Chip and PIN fraudsters jailed

Chip and PIN fraudsters jailed

29 October 2008  |  12222 views  |  0 comments
Fraudsters rigging Chip and PIN terminals to steal data - report

Fraudsters rigging Chip and PIN terminals to steal data - report

13 October 2008  |  14451 views  |  0 comments
UK police bust Chip and PIN crime factory

UK police bust Chip and PIN crime factory

13 August 2008  |  12119 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit http://info.nice.comVisit www.vasco.comvisit www.ebaday.com

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
10978 views comments | 16 tweets | 12 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8521 views comments | 15 tweets | 42 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
8479 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8358 views 10 comments | 21 tweets | 26 linkedin

Featured job

Basic c.£90K OTE c.£180K plus full benefits pac...
London based

Find your next job