Wrestling with a million dollar baby – skimming


The restaurant industry is rife with ways to lose profitability. Just when you think you have things buttoned up, a new twist comes along that can threaten your business and you may not even know about it. Last year the restaurant industry lost an estimated $200 million to a theft scheme called “skimming.” The cashier or server is equipped with a portable electronic device commonly known as a “skimmer” that can be easily be hidden in a pants pocket. When handling customer credit cards the employee swipes the card through the POS system to capture the sale and while still in possession of the customer’s card, swipes the card through the skimmer as well. The customer’s information contained on the magnetic stripe on the back of the card is captured in the device. The information is then typically sold or transferred to organized rings that produce counterfeit cards and rack up fraudulent charges.

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