Thieves targeting payment machine terminals in refund scam

Why thieves are stealing card payment terminals Police believe a rash of thefts of card payment machines in the GTA is connected to a 'refund scam' ring involving fake credit cards.

Small business owners and workers might want to keep an eye on the debit and credit card payment terminals in their stores, as there is a new scam targeting these machines in the Greater Toronto Area.

“I couldn’t believe it. We had five payment terminals stolen from our stores” Alan Kideckel, CEO and President of International Pool and Spa Centers, said.

Kideckel said after a successful summer selling pools, spas and supplies, he was shocked when his store was targeted by criminals this fall who were stealing his payment machines.

“It seems that one person would come in and try to distract our employees and then another person would steal the payment machine. We believe it’s connected to organized crime,” Kideckel said.

Police and payment system companies say the thefts are part of a “refund scam” where thieves steal the payment terminals, usually from stores that sell big ticket items, and then refund the money onto stolen credit cards.

"It’s my understanding once they have the terminals they refund the money to stolen credit cards. Then they go to a bank machine and withdraw the money," said Kideckel.

Kideckel turned over photos of the suspects to police, and Halton Regional's Police Service (HRPS) said the thefts are still under investigation.

“It was later determined that the suspects processed approximately $15,000 worth of debit refund transactions over the course of the following days,” an HRPS spokesperson told CTV News Toronto.

Moneris is Canada’s largest payment processing company and said it is aware payment terminals are being targeted by thieves for various scams.

Yale Holder, the Vice President of Customer Experience at Moneris, said all merchants should keep a watchful eye on their payment machines, especially leading into the busy holiday season.

"It's a refund fraud activity that we have seen increasing over the last couple of months, particularly this year,” Holder said. “Never leave your terminal unattended and always make sure you are around when customers are using them.”

“In the event you have to go away and you're short on staff, try to see if you can have the terminals secured and fastened to the counter or in some other way to prevent them from being taken,” Holder said.

Holder said most terminals have security features and pin technology that need to be activated, so in the event a terminal is stolen, thieves wouldn't be able to use it.

Any business defrauded in this refund scam should get all their money back, but companies are advised to report a payment terminal being stolen as soon as it happens.

Halton police say anyone who may have information related to the theft of the terminals should call the 2 District Criminal Investigations Bureau at 905-825-4777 ext. 2216. Anonymous tips can also be submitted to Crime Stoppers at 1-800-222-8477 (TIPS) or online at www.haltoncrimestoppers.ca.