UK Businesses face threat of PDQ Machine theft or misuse. A growing number of businesses have suffered significant financial loss, which can only be covered by a Cyber Liability insurance policy. These fraudsters are not always behind a computer; they prey on businesses operating with less staff than normal, taking advantage of their vulnerability.
Businesses, large and small, operations across multiple industry sectors, operating with a ‘skeleton workforce’ following Covid-19, need to be aware of this threat.
How does it happen?
One person skilfully distracts members of staff, whilst his accomplice locates and manipulates the card machine by refunding substantial amounts of money onto their card(s). We have also seen examples of PDQ machines being stolen and used fraudulently as well as machines being switched.
Distraction techniques are not a new phenomenon. However, with more sophisticated payment technology available the use of card devices seems to be an increasing trend for fraudulent activity.
Some action points from us:
- Urge your staff to treat the terminal like the till – always ensure you are in control of the transaction and have sight of the device; consider them as mini “cash dispensers”
- Be wary if someone is taking longer than five to ten seconds to type in their PIN, or if someone is else is trying to get your attention during this time
- Businesses can install additional security measures on these devices to prevent refunds being given without specific authorisation, and should speak to their acquirer for further advice
- Protect yourself with a robust Cyber Insurance policy as standard business insurance polices do not provide cover for fraud
For more information on Cyber Liability Insurance, please contact Jason Cohen on 07511 398238.