http://www.bankinfosecurity.com/low-tech-scheme-targets-small-merchants-a-6147
By Tracy Kitten
Bank Info Security
October 15, 2013
Many merchant network breaches involve fraudsters intercepting unencrypted
transactions as they're transmitted from the point of sale. But last
month, fraudsters targeted a handful of small retailers in Kansas City,
Mo., with a low-tech scheme designed to block transactions.
Local merchants notified authorities that the satellite dishes they use to
transmit payment card transactions, including authorizations, had been
covered with aluminum foil to block transmission of credit card
transaction data via satellite to card issuers, helping to pave the way
for fraud.
The Kansas City Police Department explained in an alert how the scheme
worked. Retailers routinely use the satellite dishes to send transactions
to the card brands and payments processors, which helps detect fraud. When
the dishes were covered, however, transmissions were blocked, allowing
fraudsters to run countless transactions with credit card numbers that
were counterfeit or stolen.
Over the course of a weekend, about four small businesses were
compromised. In one case, fraudsters used the method to spend $1,665 on
cigarettes with a fraudulent card number, police say. Police have now
warned neighboring businesses to check their satellite dishes for
tampering and to immediately notify authorities if they notice anything
suspicious.
[...]
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