Front Lines
news/analysis
MISSION
POS-SIBLE
IT IS POSSIBLE TO PROTECT THE
POINT-OF-SALE ENVIRONMENT AND
ASSETS, ARGUES AIDA FAZELY, FRAUD
EXECUTIVE AT APACS, THE UK
PAYMENTS ASSOCIATION
SINCE the introduction of Their methods include
chip and PIN in 2003, both placing data-capturing
counterfeit card fraud and devices or bugging
lost and stolen fraud losses equipment in the PIN Entry
have been significantly Device, along with pinhole
reduced in the UK. The latest cameras that are typically
data from The UK Cards focused on the keypad,
Association shows that recording customers PINs.
Aida Fazely
counterfeit card fraud losses One of the ways that
in the UK have decreased fraudsters carry out this type this type of fraud and has and staff security issues.
68% over the last four years: of fraud is by stealing chip produced two good practice A smaller version of the
counterfeit fraud was and PIN devices and guides for use by retail security guide (Retailer
reduced from £105.9m in doctoring them, prior to re- managers responsible for the Advice: Protecting your chip
2004 to £33.8m in 2008. installing them in a shop security of retail premises and and PIN terminal) has also
Equally lost and stolen card environment. equipment. These guidelines been developed which
fraud losses fell from £114.5 This sort of compromise has should be taken into provides concise practical
m in 2004 to £54.1m in 2008. huge reputational consideration when messages that can be
These decreases are due to consequences for any retailer reviewing or developing employed and used
the fact that the introduction involved and could result in security procedures and immediately. The two
of chip and PIN has made it customers losing their trust in processes for retail point-of- guidelines complement each
more difficult for criminals to the retailer’s ability to provide sale environment. As well as other: The Security Guidance
use fake or stolen cards in a safe shopping environment. being useful for security or can provide the decision
cash machines and shops in There have been cases where loss prevention managers, makers within a retail
the UK. the targeted retailer has seen the guidelines provide good organisation with
Despite the reduction of a dramatic reduction in reference points for credit recommendations regarding
counterfeit card fraud in the turnover as whole and compliance heads and practices they might deploy
UK, overseas fraud losses on communities shy away from managers. across their retail chains,
UK card details have been shopping at the compromised Security guidance for card whereas the Retailer Advice
increasing. The reason site. For bigger chains it could acceptance devices provides guide can be used by store
behind this increase is due to have a negative impact on comprehensive advice managers as a quick and easy
criminals carrying out old- their brand name and regarding the different types reference point.
style card fraud by targeting identity. Considering that the of attack that fraudsters carry The UK Cards Association
the magnetic stripe details of level of sophistication and the out on point-of-sale devices, strongly advises retailers to
UK chip and PIN cards. amount of effort fraudsters and details of exactly what obtain both these guides and
Fraudsters then create fake are prepared to put into retailers can do to help use them to better protect
magnetic stripe cards that defeating security systems is prevent themselves becoming their point-of-sale
they use overseas in countries continuously increasing, it is a victim, as well as what to environment. The smaller
that have not yet introduced becoming even more do if they discover doctored guide can be downloaded
chip and PIN. important that retailers work devices on their shop floor. from the Card Watch website
Criminals use a variety of towards protecting their The document looks at at www.cardwatch.org.uk.
ways to get hold of point-of-sale environment as various aspects of point-of- To obtain a copy of Security
customers’ card details and best as they can. sale security, including: how Guidance for card acceptance
PINs, and will always try to The banking industry to safely manage chip and devices send an email request
target shops and businesses continues to work with police PIN equipment; physical through the Card Watch
in order to commit fraud. and the retail sector to tackle security of the equipment; website. RF
ISSUE 4 AUGUST 2009 • 11
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