The Niagara Regional Police Service (NRPS) is warning local businesses about an increase in fraudulent activity involving point-of-sale (POS) terminals. Criminals are increasingly targeting these devices—stealing or swapping machines, or installing malicious hardware—to initiate fraudulent refunds onto credit cards under their control. These types of fraud are costing businesses thousands of dollars in chargebacks and fees, not to mention potential damage to their reputations.
What Businesses Should Do
Secure your POS devices: Keep terminals locked, tethered or stored when not in use; conduct daily physical inspections. Lock down refund/void permissions: Require strong passwords and manager-level authentication for any refund or void transaction. Monitor transaction patterns: Use analytics tools to flag unusual refund rates, voids or simultaneously active terminals. Train your staff: Ensure employees are trained to spot equipment tampering—such as loose overlays, extra devices or unfamiliar hardware—and to report concerns immediately. Upgrade systems: Switch to encrypted, EMV- and contactless-enabled terminals; discontinue use of magnetic-stripe-only setups.
The NRPS Central Fraud Unit is encouraging businesses to immediately report any thefts or signs of tampering to their financial institution, POS terminal processor and local law enforcement.