It was last year that I heard a prominent loss prevention professional - a name that many in the industry would instantly recognize as a keynote speaker at conferences and seminars - say to me: "You can't expect your cashiers to be able to prevent fraud from occuring in your stores." Or something along those lines. The conversation occured at the FraudFighter booth at the NRF Loss Prevention show in June of last year, so I may not remember the exact words he used. But the general gist of the comment was the same.
You may have noticed that new debit cards and credit cards are being issued with a visible microchip on the front, above the first four digits of the card number. The purpose of the microchip is to make it harder for criminals to use your debit/credit card fraudulently and is designed to meet the EMV standard, which will be discussed in just a moment. However, due to the added security by microchips, issuers of the debit and credit cards have agreed to shift the financial liabilities of card fraud onto merchants starting October 1st, 2015, coining the change as the “fraud liability shift.”
Scientists out of the National University of Singapore have found a method of utilizing nanohole technology to potentially prevent the counterfeiting of documents, credit cards, currency, and ID cards. The new technology was designed to incorporate over 34,000 nanoholes on an "ultra-capacity nano-photon sieve" surface. This surface would ensure that holograms could not be replicated by counterfeiting fraudsters.
For as long as governing bodies have released official documents and notes, counterfeiting has been an accompanying issue. This deceptive practice dates all the way back to ancient Rome, when counterfeiters would actually shave small flecks of gold and silver off of coins in order to make their own money. In this perpetual game of cat-and-mouse, it often seems like counterfeiters are always able to stay one step ahead of countermeasures.
The busiest shopping day of the year is approaching, Black Friday. Businesses are expecting their highest volume of sales during this time of the year. Last year 92 million Americans were reported to have participated in highest grossing shopping day of the year. Even Greater numbers are anticipated in 2014, thanks to the steadily improving economy. We should expect, then, that among this larger number of shoppers, that there will be criminals seeking to exploit and take advantage of retailers during their busiest time of the year.
The following information is scary. Stop reading now unless you have a robust identity authentication system in place for your business.
It is always a treat to hear from actual identity thieves: understandably they are not often forthcoming on their criminal activities. Dan DeFelippi operated unrestrained for nearly half a decade, starting from college-years dabbling in fake IDs, before getting caught by a perceptive Best Buy store manager. Facing eight years in prison, he made a deal with the government to pay back $200,000 and join the Secret Service to help spot credit card fraud perpetrated by thieves like him. In an interview with CreditCards.com, DeFelippi recounted his adventures in fraud, and the important lessons we should take away form his experience.