Samuel Onuha has shared on social media ICON Amsterdam Shopify live sales, BUT considering their clothing brand is a front face business, it is also very possible that the real time purchases are “arranged”.
How POS Credit Card Scams Work – What You Need to Know to Stay Safe
Point-of-sale (POS) credit card scams are a growing concern in today’s digital economy. As more consumers rely on debit and credit cards for everyday purchases, scammers have adapted by exploiting weaknesses in POS systems used by retailers, restaurants, and even small vendors. Here’s a breakdown of how these scams typically operate and how you can protect yourself.
1. Skimming Devices at POS Terminals
One of the most common scams involves skimming. Fraudsters install discreet devices on card readers that capture and store card data when customers swipe or insert their cards. Some skimmers even come with hidden cameras to record PINs as they’re entered.
2. Fake POS Terminals
In more advanced schemes, scammers replace a retailer’s real POS machine with a counterfeit one that records card details. These fake terminals look identical to real ones but secretly log sensitive data for later retrieval.
3. Inside Jobs
Employees with access to the POS system may participate in scams by installing skimmers, manipulating software, or copying customer data directly from the terminal. This type of fraud is harder to detect and can continue unnoticed for weeks or months.
4. Malware on POS Systems
Hackers often target POS systems with malware designed to harvest credit card numbers in real time. These cyberattacks are particularly effective in large-scale retail chains and can lead to data breaches affecting millions.
5. Wireless Data Theft (Shimming)
Contactless cards (RFID-enabled) can be vulnerable to “shimming” – a technique where criminals use small devices to intercept data from chip-enabled cards, especially in environments with poor security protocols.
6. POS Phishing Scams
Retail staff or business owners may be duped into downloading fake software updates or clicking malicious links, which install malware onto the POS system. Once infected, the system quietly siphons off customer data.
7. Cloned Card Use
After card details are obtained through any of the above methods, scammers often use the information to create cloned cards. These are then used for unauthorized purchases until the card is flagged or canceled.
8. Fake Refunds
Another method is to perform fake refunds using stolen card data. This typically involves collusion between a corrupt employee and a scammer, transferring money to fraudulent accounts disguised as customer refunds.
9. POS Configuration Exploits
In some cases, POS systems are misconfigured or left unsecured, allowing remote access. Hackers can exploit these weaknesses to steal data or take control of the entire payment processing system.
10. Dark Web Resale
Once stolen, credit card data is often sold on the dark web, where other criminals purchase the information in bulk to carry out additional fraud or identity theft.
How to Protect Yourself:
- Always inspect card readers before use.
- Use tap-to-pay or digital wallets when possible (they’re harder to skim).
- Cover the keypad when entering your PIN.
- Enable transaction alerts from your bank.
- Use credit instead of debit for added fraud protection.
- Businesses should keep POS software updated and use end-to-end encryption.
Conclusion:
POS credit card scams are evolving, but awareness and vigilance remain your best defense. Both consumers and businesses must stay informed and adopt best practices to prevent falling victim to these sophisticated forms of fraud.
