[ISN] Low-Tech Scheme Targets Small Merchants

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. […]