Your payment terminal was stolen - now what?

It’s probably not something you’ve ever thought about, but what happens if your payment terminal is stolen? Whether it’s taken as part of a burglary when the store is closed, or one person successfully distracts staff while another takes the terminal, the result is the same: costs to replace the terminal, potential for fraudulent transactions – and a hit to your business’s reputation. 

Contact your payment processor and terminal provider as soon as you realize the terminal is gone, as well as the police. 

Even if you get your terminal back, you still need to be vigilant. The thieves may have tampered with it to access cardholder information. 

Skimming

Skimming is the term used to describe what happens when information is taken from the magnetic stripe on a payment card and transferred to another card which is then used to make fraudulent purchases. 

This can be done either through 

• a small device inserted into the card reader that records the card details,
• a pin-pad overlay which logs the keys the customer presses,
• a monitor that intercepts information from contactless payments such as QR codes or apps on cellphones, or
• malware uploaded to the terminal to steal information and perform fraudulent transactions.

If your terminal is stolen and then returned, look it over very carefully for any modifications. Contact your terminal provider and ask for the best course of action – they may suggest getting a new terminal. 

Fraudulent Returns

A thief doesn’t need to modify the terminal to steal money. If a passcode is not used to operate the terminal and/or to permit a refund, thieves can process refunds onto any cards they have available to them (usually also stolen property). 

You are not guaranteed to be reimbursed for the money you lose, and the increased cost of premiums may make it prohibitive to file an insurance claim.

Tips for preventing terminal theft

• Don’t leave terminals in plain sight and unattended
• Use a mounting platform and a security tether to attach the terminal to the stand
• Lock terminals away when the business is closed
• Use a passcode to access the terminal
• Use another passcode for processing refunds and limit who has access to that code
• Cover the terminal when entering passcodes to prevent accidental sharing of the code
• Change passcodes when an employee leaves the company
• Don’t give out information regarding your payment terminals to unknown callers
• Ensure staff stay with the customer while a transaction is completed
• Speak to your payment/terminal provider for more information on how to protect your terminal. 

If you have any questions or concerns, please contact our Business Advisors at 1-833-568-2342 or hrnow@cfib.ca.