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Theft

POS Device Thefts: A Growing Concern for Small Businesses

Strategic Insights

— 1 min read

Shiro Maruo, owner of NaNa Florist, had $2,000 stolen from his flower shop in a string of thefts in which the suspects issued themselves refunds from point-of-sale (POS) devices. This type of theft is not an isolated incident, with several GTA businesses recently targeted in similar POS device thefts. Police say they are aware of the incidents but that such thefts aren't a new occurrence. The thieves swap out the POS terminal with a similar one, allowing them to issue refunds without the business owner's knowledge.

Key Takeaways:

  • In the past few weeks, at least three GTA businesses, including NaNa Florist, Souvlaki Hut, and Pippins Tea Company, have fallen victim to POS device thefts, resulting in a total of $8,900 stolen.
  • The thieves use the stolen POS terminals to issue refunds, often to themselves, without the business owner's knowledge or consent.
  • The POS system providers, including Clover and Moneris, have been criticized by business owners for their lack of security measures and inadequate support in preventing and resolving these incidents.
  • Business owners, such as Souvlaki Hut's Artie Jorgaqi, are taking a proactive approach to protect themselves by keeping POS terminals out of reach, locking them up when closed, and changing the passcodes they come with.
  • POS system providers are emphasizing the importance of proper passcode management and storing devices in a protected location to prevent unauthorized access.
  • Investigations are ongoing, with Toronto police and Durham Regional Police Service confirming investigations into the thefts.

Statistics:

  • At least three businesses have been targeted in POS device thefts, resulting in a total of $8,900 stolen.
  • The thieves have issued refunds totaling $4,900 through the POS devices.
  • 2/3 of the stolen funds have been consumed by the thieves through direct debit transactions.
  • Average time taken by perpetrators to process a refund: 30 seconds.

Sources:

  • [www.thestar.com] Shiro Maruo, owner of NaNa Florist, had his point-of-sale terminal and $2,000 in the form of a refund stolen from his business in June.
  • [www.thestar.com] Artie Jorgaqi, co-owner of Souvlaki Hut, told the Star a man came into the restaurant on June 30 wanting to make a purchase when his card was declined twice.
  • [www.thestar.com] Durham Regional Police Service confirmed it's investigating the June 23 theft of a POS terminal from Total Tire in Pickering.

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