Low-Tech Scheme Targets Small Merchants

[InfoSec News <alerts () infosecnews org>]

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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