There has been a consistent increase in card terminals being stolen from car dealerships to perform refund frauds. It has been reported that criminals are entering dealerships, distracting the salesperson and taking the PDQ terminal to process refunds.
The refund fraud is being committed using a generic supervisor card to put refunds on the criminal’s credit cards and this has resulted in heavy losses for some motor businesses, as often funds cannot be recovered.
The dealerships impacted have been of all sizes where staff are being distracted and the gangs seem to be looking for weak points where the terminals are being left unattended or are in easy to access locations.
In order to protect your business from potential fraud, we are sharing the following advice:
- Change card terminals to pin access for refunds rather than supervisor cards. Limit the number of people in the business who know the PIN and can authorise refunds.
- Secure all terminals during day and night to prevent easy access. Some dealerships are locking away devices during both working hours and overnight. Do not leave terminals unattended at any time where the public can gain access to the devices.
- Be aware of distractions and unusual behaviour. Dealerships to be extra alert.
- Complete end of day banking to ensure totals agree with daily takings.
- Ensure the number of devices at the start and end of day are reflective of the dealership terminal count.
Another precaution that dealerships can take to reduce the risk of refund fraud is to limit the number of terminals on site that refunds can be processed from. If restricted to one fixed terminal on site, this reduces the risk of a criminal stealing a portable/mobile terminal to process the refund and then replacing it. Some dealer groups are now only processing refunds at Head Office locations to completely protect their business.
Purchase Direct customers should contact their Account Manager on 01707 299 100 if they have any concerns or questions.