Retailers Beware Of Recent EFTPOS Terminal Skimming Operations

Information verified correct on October 22nd, 2016
Credit card placed on EFTPOS machine

Retailers in Australia are warned to be on alert after recent credit card fraud activities targeting EFTPOS machines throughout NSW and Australian capital cities. The $50 million scam is orchestrated by overseas Asian gangs, people who work to a common cause with the sole purpose of robbing EFTPOS owners of their money.

The credit card fraud is possible as gangs use tampered machines to steal sensitive data while buyers pay for their purchases. Details are skimmed with the help of these fake machines making it very hard to see whether you are actually dealing with a real machine or a clone.

Spokesman for Electronic Frontiers Australia, Geordie Guy says retailers are not paying attention to the simple methods used to protect themselves from skimming operations.

People aren’t doing them, and it’s really that simple. It’s one of those problems where the simplest way is quite often the best* way. I think to an extent retailers are treating EFTPOS machines differently from the till. It’s often been said to keep an eye on the till, but no one looks at the EFTPOS machine.”

EFTPOS machines are tampered with in order to install the hardware necessary to run the skimming operation. It is also thought quite possible that many of these tampered machines could even be rigged before the terminal reaches a retail outlet.

Mr Guy said: “You have to pay attention to a lot of things, and it’s difficult. But it has to be done. I think the only way this is going to go away is when somebody comes up with an inherently secure EFTPOS machine.”

The NSW Fraud Squad recommends that customers should check terminals for any signs of irregularities. The hardest hit at present are McDonald’s, clothing stores and convenience stores.

Detectives are working closely with interstate and international counterparts as part of the ongoing investigations. Police wish to remind consumers to take precautionary steps when using EFTPOS terminals,” the force said in a statement.

Detectives warn that offenders can covertly capture card data which is then used to fraudulently withdraw funds from victim’s bank accounts.”

Credit card fraud protection tips for retailers:

  • Be aware of security around the EFTPOS terminal.
  • Make sure the terminals are left in a secure location and are not removed.
  • Checking all EFTPOS terminals frequently to ensure serial numbers are correct.

Credit card fraud protection tips for consumers:

  • Always check receipts and EFTPOS transaction records.
  • Checking your bank statements the day you receive them in the mail or online.
  • Be aware of how many funds are in an account.
  • Refuse to release your PIN.
  • Cover your PIN when using a terminal.
  • Use chip-enabled cards if you can.

Source: Smart Company

Back to top
Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Credit Cards Comparison

Rates last updated October 22nd, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question