Point-of-sale POS Fraud Detection that Protects Your Revenue
Every $100 lost to fraud actually costs you $360, after you count in the fines, lost goods, and operational chaos. FastoSafe’s AI-driven POS fraud prevention solution blocks scams in real time, slashes chargebacks by 92%, and keeps your payment processing secure.
FastoSafe
Three POS Fraud Types Crippling Your Business
Stolen Card & Transaction Manipulation
Criminals use stolen credit cards from data breaches to make purchases. At busy point-of-sale terminals, they exploit physical and digital vulnerabilities, using counterfeit cards or manually entered numbers to bypass security. Some fraudsters go further by manipulating transaction records, altering amounts or duplicating entries to reroute funds unnoticed.
Chargeback & Refund Fraud
POS chargeback fraud happens when customers make legitimate purchases and later claim their card was used without permission, keeping the merchandise while disputing the charge. Fraudsters also modify transactions to create unauthorized refunds or inflate refund amounts, draining business revenue.
System Breaches & Unauthorized Access
Weak security measures like default passwords, outdated software, and poor network protection allow attackers to infiltrate POS systems. Once inside, they access customer data, transaction records, and payment details, putting businesses at risk of large-scale data theft and financial loss.
Why FastoSafe is the Best POS Fraud Prevention Solution
Fraud at the point of sale puts your entire business at risk. From chargebacks to data breaches, criminals exploit every vulnerability they can find. FastoSafe’s AI-driven solution proactively detects and prevents fraud in real time, ensuring your transactions stay secure without disrupting the customer experience. Here’s how we protect your business:
Real-time Point-of-Sale Fraud Detection
Our AI constantly monitors your POS terminals. The system recognizes unusual transaction patterns from specific registers or employee logins. When a terminal processes suspicious refunds or has abnormal activity, you're alerted immediately.
Smart POS Chargeback Protection
We capture concrete evidence with every in-store transaction. When customers dispute charges made at your terminal, our system automatically compiles proof including signatures, PIN verifications, and terminal data. This targeted evidence helps you win chargebacks from point-of-sale transactions.
Card Testing Protection
Our system blocks criminals from testing multiple stolen cards at your registers. We detect rapid successive purchases with different cards and automatically increase security requirements when suspicious patterns emerge. This prevents your terminals from becoming verification points for stolen data.
Dynamic Authentication
We add advanced security without slowing checkout. The system applies the right level of verification based on transaction risk. Regular customers experience no friction while suspicious transactions receive additional scrutiny. This protection works with your existing hardware.
Simplified Compliance
We automate PCI requirements for your terminals. The system manages encryption, updates firmware, and monitors for security issues before they become compliance violations.
Best Practices for In-Store Transaction Security
Fraudsters exploit weak security practices in your store. Strengthening your defenses doesn’t have to be complicated. By taking a few proactive steps, you can protect your POS equipment, secure your environment, and empower your team to prevent fraud before it happens.
Protect Your POS Equipment
Track every device and verify serial numbers regularly. Check your credit card terminals and PIN-entry devices for any signs of tampering. Early detection stops fraud in its tracks.
Secure Your Environment
Your POS isn’t just a device, it’s part of your space. Use secure stands, tethers, or cables to prevent equipment swaps. Regularly inspect your area for hidden recording devices, and add security cameras for extra peace of mind.
Train Your Team
When someone orders unusual quantities or exhibits purchasing patterns that suggest reselling or illegal distribution, we flag it immediately. This helps you avoid unwittingly participating in improper product distribution.
Getting Started with FastoSafe
FastoSafe integrates directly with your payment gateway, working in the background to stop fraud without disrupting customer experience. The setup is simple:
Sign up for a free fraud risk assessment.
Connect FastoSafe to your existing payment system.
Start protecting your transactions instantly.
Going Over Your Chargeback Limit is Business-Threatening
Payment processors like Visa and Mastercard enforce a 1% chargeback limit (1 dispute per 100 transactions). If you exceed this threshold, the consequences are severe:
- Payment processing access revoked: You may lose the ability to accept payments.
- Sales funds locked: Up to 10% of your revenue could be held for six months.
- High-risk status: Future processors may reject you or impose steep fees.
The Bigger Risk: Chargeback Clusters
Fraud-driven chargebacks don’t happen one at a time, they often snowball:
- A card testing attack can generate hundreds of micro-disputes in minutes.
- A batch of stolen cards used for luxury purchases can obliterate your chargeback ratio overnight.
As a result, you’re suddenly over the limit, facing financial losses and potential account termination.
Ready to protect your POS system?
Get a free fraud risk assessment today and see how FastoSafe can secure your terminals while improving customer experience.
FAQs About POS Fraud Prevention
What are the signs that my POS system has been compromised?
Common signs of a compromised POS system include unusual transaction patterns, unexpected changes to the terminal’s functionality, or slow system performance. If you notice customers disputing unauthorized charges or finding card data on multiple accounts, these could be indications that fraud is happening through your POS.
What is a payment gateway, and how does it protect POS systems from fraud?
A payment gateway is a service that processes payment transactions between your POS system and the financial institutions involved. It adds an additional layer of security by encrypting card details before they are sent for authorization. FastoPayments gateway also offer fraud prevention tools like real-time transaction monitoring and fraud scoring.
What is 3DS and how does it protect my POS system?
3D Secure (3DS) is an added layer of authentication for online payments. It prompts customers to verify their identity with a password, fingerprint, or other methods during the transaction. This helps to reduce fraud by ensuring that the person making the purchase is the authorized cardholder, adding an extra level of protection beyond just entering a card number.
What is EMV technology?
EMV (Europay, MasterCard, and Visa) chip technology generates a unique code for each transaction, making it much harder for fraudsters to clone cards. Unlike magnetic stripes, which carry the same data on every transaction, EMV chips provide dynamic authentication, reducing the risk of card duplication and other types of fraud.
How can tokenization enhance the security of my POS system?
Tokenization replaces sensitive card information with a unique identifier, or "token," that cannot be used outside the specific transaction context. This means that even if a fraudster gains access to your system, they cannot retrieve actual card details, as the tokens are meaningless without the original data and context.
