McDonald's cash machine scam netted millions

The Daily Telegraph can reveal the McDonald's overhaul comes amid police warnings retailers must be more vigilant in maintaining EFTPOS security. Criminals snatched EFTPOS devices at McDonald's outlets across Perth and replaced them with bogus card-skimming versions, fleecing at least 3500 customers… they had no need to change their security protocols on EFTPOS terminals because their machines contained more advanced technology.

The Daily Telegraph
October 21, 2009

McDonald's cash machine scam netted millions
Nick Tabakoff

McDonaldsAusSkimming.jpg

McDonald's customers were fleeced of $4 million in a widespread EFTPOS machine scam at its stores / File

AUSTRALIA's largest fast food chain will overhaul security on its EFTPOS machines after customers were fleeced out of $4 million.

The Daily Telegraph can reveal the McDonald's overhaul comes amid police warnings retailers must be more vigilant in maintaining EFTPOS security.

Criminals snatched EFTPOS devices at McDonald's outlets across Perth and replaced them with bogus card-skimming versions, fleecing at least 3500 customers.

McDonald's spokeswoman Christine Mullen said the company will implement "a number of measures across the country to protect (EFTPOS) security".

Ms Mullen admitted the scam was "very much a concern", but declined to reveal new security measures.

It is believed they will include new technologies preventing the removal and tampering with EFTPOS PIN pad and give the machines a highly visual presence in each store across the country.

Western Australia's top fraud officer Detective Senior Sergeant Don Heise said the McDonald's scam occurred when legitimate EFTPOS PIN pads were replaced by bogus ones that transmitted PINs to criminals. .

"It does not take much time to switch one of these (PIN pads) over, perhaps 15 to 20 seconds.

"It's plug and play."

The most likely scenario in the scam had been that McDonald's workers had been distracted while providing services to customers.

The fake EFTPOS devices were then probably substituted.

More than 3500 people's cards were compromised..

Sgt Heise is heading up a taskforce, Operation Mintox - which has so far made no arrests - to target the McDonald's crime.

He urged NSW retailers to learn from the Perth experience and closely watch their terminals.

Spokesmen for Australia's two largest retailers, Woolworths and Coles, both also said they had no need to change their security protocols on EFTPOS terminals because their machines contained more advanced technology.

http://www.news.com.au/business/story/0,27753,26239948-462,00.html


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