Businesses can be defrauded in various ways by members of the public and/or staff. This may include the misuse of credit cards that have been stolen or fraudulently obtained.

For example, criminals can obtain information from a genuine credit card in order to create a fraudulent card. This could be done through scanning cards at an ATM or EFTPOS terminal. The card may then have a name on it, different to the account holder.

• Ensure staff check and compare the name on the card and the name on the receipt (if applicable). If these differ, a supervisor should be notified immediately. Staff should pay particular attention to brand new cards.
• Businesses can consider setting floor limits, therefore transactions over a certain limit will require authorisation from the bank. Staff should be alarmed if the same customer is making multiple transactions to avoid the authorisation.
• Avoid manually entering card details, which is sometimes used when the chip technology or swipe does not work. The card may not be working because it may be fraudulent.
• If you suspect that the card is stolen, request a photo ID to compare their name and photograph.
• Installing CCTV cameras can be a deterrent for criminals.

Fraudulent people may approach businesses stating that they are from the bank and want to upgrade or replace the EFTPOS terminal with one that will transfer funds directly to them or via an internet connection to the cash register. This may allow them to upload malicious software such as malware to your terminal.

To protect your business from EFTPOS fraud, follow the below steps:

• When the EFTPOS terminal is not in use, store it away from public view;
• Do not access the internet through your cash register, other than for EFTPOS transactions;
• Contact the bank immediately, if you feel your business has experienced EFTPOS fraud and close the terminal by switching it off;
• If you have suffered a financial loss, advise your supervisor, contact the police, your business headquarters and centre management, if appropriate. Also obtain CCTV footage, if available; and;
• Check the EFTPOS terminal regularly to ensure it has not been changed. Make an identifier underneath your terminal so you can easily identify it.

If your business is defrauded there is no guarantee that your bank will reimburse the lost funds. Businesses need to show that they have attempted to identify the customer, prior to making the transaction. If not, your business may be charged the cost to reimburse the legitimate credit card owner. If this was the case, your business would lose the goods as well as the cost to be reimbursed.

Chip technology is the square RFID chip on credit cards. The chip holds the account holder's details, previously held on a magnetic strip on a credit card. The chip makes it more difficult for the card holder's personal information to be duplicated. The chip allows new forms of payment such as PayPass, PayWave, and Tap and Go, though these methods have made fraud more common given the user does not need to insert a pin or signature for smaller purchases, generally under $100.  

To protect your business from such fraud:

Ensure your EFTPOS terminal is set up by your bank;

Ensure you are aware if your business is set up as an online business and whether you can accept credit card and not present transactions; and

If you suspect your business has been a victim of Card Not Present fraud, advise your supervisor, contact the police, your business headquarters and centre management, if appropriate. Also obtain CCTV footage, if available.

You should be suspicious if:

A chip does not work in your EFTPOS machine, particularly if your terminal has worked numerous times previously that day;

A customer is making numerous transactions under $100 to avoid the card limit, if all of their transactions were made in the one go, they'd require the card's pin and potentially the banks' authorisation; and

A customer is making a small transaction to check if the card is working or purchasing a number of high vale gift cards because they then have access to funds without having to use the fake or stolen credit card.

For more information and tips on fraud prevention, visit the NSW Police Force website.

If you are aware of a scam, whether in your business, over the phone or online, report it at Scam Watch.

• Bankstown Local Area Command: 9783 2199
• Campsie Local Area Command: 9784 9399
• Ashfield Local Area Command: 9797 4099

While Australia has one of the lowest rates of counterfeiting in the world, it is important to be aware of the security features included on Australia's banknotes so you can protect yourself against accepting a counterfeit. It is important to note that counterfeits have no value. To determine if a suspect banknote is a counterfeit, it is best to compare it with a banknote that is known to be genuine. The Reserve Bank of Australia provides resources, including a counterfeit detection guide.

For more information, visit the Reserve Bank of Australia website.