Financial Scams Involving POS Devices

POS attacks appear to have become both more frequent and detrimental. These systems are considered “easy prey” for scammers because they are vulnerable in two respects: The first is the software aspect – POS terminals are based on popular operation systems and are connected to the Internet, thus serving as a target for infection by Trojans dedicated to data theft. The second is the physical nature of these kinds of systems – they are usually located in public places and are accessible to many people, facilitating the installation of malicious programs and components directly onto the POS terminals.

Russian-speaking platforms located on the web (forums) are known to be supporting grounds for the creation and development of a great deal of cybercrime the world over, and POS-related crime is no exception. This sphere of activity is included in the “real carding” forum topic that also deals with hacking ATM machines, installing skimming devices, hacking into ATM cameras for the purpose of recording PIN codes, etc. Below we summarized the main trends regarding POS systems that were discussed in the Russian forums in the last months.

Trade of Malware Targeting POS Terminals : While 2013 was a year of large-scale breaches via remote access to POS systems, since the beginning of 2014, we have not witnessed an inordinate number of discussions about the remote infection of POS devices, as a large part of them deal with the physical modification of POS devices. Nevertheless, we identified a sale of one new tool in May 2014, referred to by the seller simply as Dump Grabber.

Installing Firmware Components on POS Terminals: The sale of firmware components for different models of POS terminals is very popular on the underground, as is the sale of the complete terminal (ready for installation) already containing the firmware. The average price for a complete terminal is approximately $2,000, while firmware alone will cost around $700. The firmware collects track 1, track 2 and PIN code data while regular transactions are performed on the terminal, and then sends it to a specified destination.

An offer for the sale of a VeriFone POS terminal with installed firmware
An offer for the sale of a VeriFone POS terminal with installed firmware

Technical Discussions: It appears that since the infamous mega-breaches that occurred over the last year, this sphere has attracted a lot of cyber criminals, but some of them lack the technical skills necessary for success. They heard about the easy profits available in the area of POS terminals and are trying to familiarize themselves with the expertise required to make a profit via dedicated online platforms.

The two main issues recently discussed on the forums are obtaining PIN codes and bypassing the demand for chip identification. The energetic discussions that developed on these subjects may point to the difficulties they are facing in the area of POS-related cybercrime.

A forum member asks how to add a PIN requirement in POS transactions
A forum member asks how to add a PIN requirement in POS transactions

Business Models of POS-Related Scams: It is extremely difficult for a single scammer to commit a financial crime exploiting POS terminals. These scams are usually performed by small groups of cyber criminals. If the modus operandi of the scam is the remote infection of POS devices, there is a high probability that the attack group will include three types of perpetrators: the malware coders, the malware spreaders and the purchasers of the dumps.

In case of a physical infection of the POS terminals, of the kind that requires the installation of firmware components or the replacement of the terminal itself, the cooperation of someone at the business point (a shop or a supermarket) will also be required.

A forum member offers a fake POS terminal for rent, in return for 50% of the profit
A forum member offers a fake POS terminal for rent, in return for 50% of the profit

 


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