Perth SMEs hit by credit card fraud

SMEs should take note of the recent wave of credit card “skimming” in WA, and keep watch on their credit cards to ensure they do not become victims of fraud, an industry organisation warns.

The warning comes as police in WA say gangs have tampered with credit card machines in retail stores to steal account details, with over 2,500 accounts affected and up to $150,000 lost.

The police say gangs are replacing EFTPOS machines with tampered versions, and that customers should be on the lookout for any terminals that look suspicious or cheaply-made.

A spokesperson for Electronic Frontiers Australia says SMEs should be on guard to ensure their credit card machines remain safe.

“This is a tricky issue, because what you’re trying to do is different than using an anti-virus program on a computer. The best practice is to be careful when using EFTPOS machines. Does it look normal? Does the plastic card seem to stick when sliding through? If the plastic looks different or is a different colour to the rest of the machine, you can be reasonably concerned.”

“It’s less than $20 to make one of these tampered machines, and it isn’t difficult to do so, so businesses need to be on the look out for this type of thing as it becomes more widespread.”

EFA says businesses must guard their EFTPOS machines, and should look at using a number of different credit cards with lower limits in order to reduce the risk of theft if account details are stolen.

“The argument for having multiple credit cards for different purposes is a good idea, you shouldn’t just have very high credit limits because it may be convenient.”

WA police have said they have received “substantial information” about the thefts, and warn the $150,000 already stolen could rise as more people realise they have been affected.

“It is clear there is a need to protect Western Australians from these widespread scams following revelations of a scam targeting EFTPOS machines in WA,” Shadow Attorney-General John Quigley told WA Today.

“The current laws are inadequate and police are helpless to arrest and successfully prosecute people who attempt to steal bank details using skimming devices or any other method.”

Retailers have been told to contact police if they suspect their EFTPOS machines have been tampered with.