Fraud Prevention Tips for Major Retailers

  • Fraud Prevention

Its been highly publicized that Targets point-of-sale system was breached last month. You may have been one of the initial 40 million reportedly affected by the breach. Or maybe you were one of the final estimated 100 million affected. Either way, fraudsters got their hands on a lot of data. Now Neiman Marcus has declared a data breach, which also took place in December. While the company is staying quiet until the situation is fully investigated, these two retailers may not be the only ones affected by this chain of big data breaches. It could take weeks to determine if any other retailers were affected.

Cyber attacks against the payments infrastructure are evolving. Fraudsters go from the payment processors to retailers directly gaining access to data. They are finding weak spots in one retailers POS system then capitalizing on others who have similar systems. The Target and Neiman Marcus breaches prove that even large retailers are vulnerable to attacks, especially ones taking place through point of sale systems. With that being said, one of the greatest security concerns of the U.S. payments industry is poor POS integration.

While retailers may take their time to report a breach due to investigation and collecting facts, banks and credit unions are left replacing cards and covering losses suffered from breaches, meaning timely notification is critical for them. In the end, banking institutions may find it more cost effective to just reissue all compromised cards rather than monitoring those cards for an extended period of time. Organizations need to be ready for more card fraud linked to these retail compromises. Whether there is a need to reissue new cards for any cards linked to the attacks or enhancing monitoring cards that could have been compromised. Banking institutions and retailers need to be proactive while waiting for the next attack, anticipate and answer questions from anxious customers and work on securing their systems with better integration and layered security.

[Contributed by EVS Marketing]