Credit cards are a part of life. Very few people carry cash for security reasons, and credit cards just make sense. However, times have changed considerably over the last few years. Although credit card use has increased, there have been cases of identity theft and data fraud. In fact, in September 2014, Home Depot had to deal with a huge breach of its credit system, states Krebsonsecurity.
Federal authorities reported that Home Depot was the source for a massive amount of stolen credit and debit cards. Data from these cards went on sale on the cyber underground and multiple banks were affected by the suspicious activity. Consumers were rudely awakened to banks locking down on suspicious credit card and debit card activity resulting in several problems with transactions all over the US.
Careless Security Measures Caused the Problem
The surprising news is that Home Depot is not the only one who was affected. Large retailers like Target, PF Chang’s, and Sally Beauty, were also hacked by the same group of ID thieves. Another company that faced a serious problem was Goodwill Industries. The company had outsourced most of its POS processing to C&K Systems.
Poor internal security at the outsourced system led to a huge loss of data for the company. Although all four companies are struggling to recover, it does raise questions in the mind of consumers who actually felt the effects of the cybercrime. These retailers used POS systems and card readers that collected customer data for payment processing.
Was it time to switch over to cash again for daily transactions?
The News for Consumers
Surprisingly, it is not all bad news for consumers. Credit card transactions through a table card reader or through a wireless tablet or smartphone POS system are still quite reliable. Yes, these retailers were careless and they did lose customer data but the newer state-of-the-art POS systems are going to be a tough nut to crack, states Privacyrights.
Vendors like Shopify already used cutting-edge technology to make their credit card readers but they have amped up security measures to ensure customers and businesses are safe. In fact, some of the measures implemented by vendors and business owners are astoundingly simple to apply at any retail location.
- Ensure that all your systems are PCI Compliant. POS vendors usually do ensure that their credit card readers are compliant with state and federal regulations. However, as a business owner you should check this fact before purchasing the system.
- Implement hardware based point-to-point encryption for all your computers.
- If possible, you should restrict internet access to people in your store. It is also a good idea to block the SSID and use WPA or WPA2 to secure the wireless access points in your store. This can be difficult as most large stores offer free Wi-Fi for customers. It is a far better idea to restrict internet service in-store, but provide it outside the store to keep customers happy.
- If you do require wireless access, create a secure VPN and then configure the VPN on all devices to be used with the POS system. Make sure employees never connect to wireless systems without VPN.
- Some POS systems may have remote access enabled by default. Ensure you go through your tablet, smartphone or POS billing system and disable all remote access features.
- Delete all cardholder data manually and ensure that your software updates are current.
- If you are using tablets or smartphones, make sure that the systems are used exclusively for billing. When they are not in use, use lock-down systems to keep the billing systems in place.
- Use the best security software to ensure POS data is safe and keep it updated with the latest software updates.
Apart from local security, the retailer can also implement security measures to ensure a safer network. Usually, most network systems have their own security systems to prevent malicious attacks and malware. Data should also never be stored on the system or on a local server. Customer or store data should be encrypted and stored in cloud storage. Emails should also be checked before they are opened on POS-enabled tablets, smartphones or computers.
As you can see, most retailers and vendors do ensure that that their devices are protected states Forbes. These simple measures ensure that customer and store data is safe and secure. Credit card readers are convenient, simple to use, and portable. As a result, customers can use their credit cards quite safely at retail outlets. With the right measures, the store and the customer are completely secure. Just make sure that you check the billing statement to ensure that your accounts are correct and set up security alerts in case your account is accessed illegally.