Thieves Bilked Nick's English Hut For $1.2M
"A longstanding Bloomington pub is under investigation by the FBI after a massive cyberfraud operation run by international thieves bilked owners for $1.2 million"
Investigators said about six weeks ago, a prepaid debit card company alerted the owners of Nick's English Hut of six suspicious transactions that totaled $6,000, RTV6’s Chris Proffitt reported.
"What we do know is that somebody got into our merchant processor and the conduit to our account, which then takes them to our checking account,” co-owner Susan Bright said.
“The account was opened up in cyberspace, and they just started ticking away at $900 at a time,” owner Gregg Rago said.
Nick's bank and credit card processors were able to block $500,000 worth of fraudulent transactions, but the pub was charged $700,000 in fees and is now asking customers to pay in cash.
"If that's where this loss took place, the credit card processing company bears the responsibility,” customer Jack Ost said.
This story appeared on the local news last week. It is a perfect illustration of what can happen to the average merchant, if someone is able to “hack” into their processing network. Although it appears, as though they were using a POS system, we don’t know exactly what happened in this particular situation, but it is possible that if the merchant were processing with First Data, with an FD terminal and TransArmor, this breach may have been prevented. Currently, TransArmor is not available with point of sale systems, however a TransArmor application will be released later on this year.
TransArmor currently available for free from First Data and more info how it is work to secure our clients business in following video:
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