PIN Pad Switch
PIN Pad Switch Scheme: How It Works
(with video below) This scam makes its rounds again hitting the small business owners or cashiers at coffee shops, juice franchises or convenience stores. It is called the PIN Pad Switch Scheme. How does the scam work?
Watch the video below to see in action the PIN Pad Switch Scam exposed:
The crook comes in just minutes before closing, ensuring sure he is the last client of the day. "I just want to get a shake please," he says. As the clerk goes to the back of the store to make it (or to bring whatever product is the farthest), the criminal switches the PIN pad by disconnecting it from the line, and adds his own! They have studied the shop's PIN pad on a previous day and brought one similar to it, whatever the brand was.
The cashier comes back with the fresh juice, serves the scammer, and closes the shop.
What happens is the criminal takes the store's PIN pad, reconnects it, and discards all the transactions from that day. You're talking lots of credit card numbers! The next morning, they go back to the shop as the first customer of the day. "I love that shake from last night so much that I came to get another one".
While the clerk goes to the back one more time, they switch the PIN pads again and the job is done.
PIN Pad Switch: How To Avoid
First and foremost, get a PIN pad that does not disconnect easily. Also, have your clerks cash out right after closing every night. This way, if they notice no transactions come out of the machine they will know something is wrong, although they might believe the network is not available at the time and leave it for the manager in the morning.