POS systems have made the lives of retailers and business owners easier since their launch. A combination of hardware and software, the POS system is built to make the process of transactions and sales more seamless than ever before. It handles everything from tracking sales to managing inventory and generating reports. Evolving from basic cash registers and manual management, POS has brought in sophisticated systems that integrate with online sales, mobile payments, and more technologies.
While the POS system is itself very safe and secure to use, there are a few security risks that come with it. This is due to the digital nature of the contemporary POS technology. These systems are extremely vulnerable to cyberattacks, including malware and ransomware.
In this blog, we will talk about the weak aspects of point-of-sale systems’ security and how you can prevent them from putting your business at risk.
6 POS Malware Attacks You Should Know About
POS systems combine software and hardware along with confidential data about your business and sales. And to corrupt such systems, attackers can use multiple types of malware. What gives these risk factors for potential attackers, a victory over you is your lack of knowledge. But let’s break the chain here, we have listed down the most common 6 types of POS malware attacks to keep you safe!
1. Memory Scrapers
This is one of the most common POS system malware. It scans the memory of the device for sensitive data, including credit card information and numbers. Memory scraper targets the moment when the information is unencrypted and captures it before anyone suspects.
2. Keyloggers
The second malware attack is keyloggers. It records keystrokes that are made on a POS system. This malware is super dangerous because it not only captures the card data but also learns the passwords and other confidential information entered through the keys.
3. Network Sniffers
Next up, we have network sniffing malware, which monitors and captures the data that travels across the network to which the POS system is connected. This malware is adept at intercepting data during transmission, making it a concern for systems relying on network transactions.
4. RAM Scrappers
Another malware that the point-of-sale systems’ security can be exposed to is random-access memory (RAM) scrapers. This malware focuses on extracting data that is stored in the system’s RAM. They are effective because POS systems usually store unencrypted data in the RAM while processing.
5. File Injectors
File injectors are another type of malware for POS systems that administers malicious code into legitimate files on the device. This way, the altered files malfunction and behave as a conduit for data theft and other fraudulent activities.
6. Backdoor Malware
Backdoor malware creates hidden entry points into the system, providing no risk factors for potential attackers. It gives them prolonged and undetected access, which can be used for data theft and system monitoring.
Bonus Insights:
Each POS malware has a specific counter method and target, which allows it to suit different attack scenarios. Memory scrapers and RAM scrapers use the unencrypted sensitive data during the brief moments of staying unlocked. Keyloggers and network sniffers capture data inputs and their transmission to the main servers. File injectors and backdoor malware focus on control and access over the POS systems. To fight back against any of these malware, it is important to identify the characteristics so you can counter each type of threat effectively.
How POS Malware Works?
POS malware is basically designed to threaten the security and confidentiality of a system, which achieves the main objective of data theft. Below is a jot down of the process and how it works.
Infiltration
The malware enters the POS system. This usually happens via phishing emails to employees and the use of compromised credentials by exploiting vulnerabilities in the POS software. Once it gets access, the malware establishes itself within the system.
Residence
While getting unfiltered, malware initially stays dormant to avoid detection. This is the phase where it embeds itself into key processes as a legitimate software. That way, malware gets to operate in the POS environment easily.
Operation
The malware is active mostly during transactions. It scans the memory for the unencrypted data, logs keystrokes, and learns the network traffic. The malware can even alter the transaction process and create fake yet unauthorized transactions.
Data Transmission
Once the data has been captured, the malware package transfers it to remote servers, which are controlled by the attackers. This transfer is usually done so secretly that it avoids raising alarms.
Persistence & Spread
Many POS malware maintain a comprehensive presence on the infected system for longer time periods. This way, they can spread to other connected systems as well, widening their scope of attack.
POS Malware Risk Factors for Businesses
Risk factors for POS malware revolve around different aspects of a POS system’s security, operation, and maintenance. This can include the following;
- Systems running on outdated software
- Weak passwords and credentials
- Lack of employee training about phishing attacks
- Unreliable network security
- Single-layered security measures
- Easy physical access to systems
- Avoiding continuous monitoring
Pro Tip:
At this point, you need to get a POS system that is highly customized as per your business needs and is built by a reliable POS company. For instance, you can trust POS Circle as our team of experienced and skilled experts is equipped to help you get the payment device tailored to your requirements.
POS Malware Effects on Businesses & Customers
POS malware can have a big impact on the business and its customers equally. The effects for businesses include:
- Financial losses on a massive scale
- Social reputation damage
- Operational disruption
- Legal and regulatory consequences
- Increased costs for improved security
- Need of expert staff training
For customers, the effects can include the following:
- Increased financial risk as the card information is at stake
- Stolen data can be used for identity theft
- Alarmed privacy concerns about personal information
- Loss of trust among customers
How to Protect Your Business against POS Malware
For businesses actively searching to protect themselves and their customers from malware attacks, below are a few key tips to ensure ultimate security.
Tip 1. Regular Updates
The first preventive measure to make your POS system safe is to get regular software updates. This usually includes patches for security vulnerabilities, which the malware could exploit.
Tip 2. Strong and Complicated Passwords
Next up, ensure to implement strong password policies. Use cases that are not easily remembered, and keep changing your password regularly. Also, never rely on the default passwords that originally come with the systems.
Tip 3. Employee Education
Followed by this, businesses need to educate their staff about malware, cybersecurity, and threats to data breaches. For this purpose, they need proper training and should learn about phishing scams.
Tip 4. Network Security
Never forget about the security of your network. Ensure to use firewalls and double-check to ensure your WiFi’s network is completely safe and encrypted during use. You may separate the network for your POS system and use a different one for general business activities.
Tip 5. Use of Antivirus & Anti-malware Tools
To prevent the POS system from any unknown and unrecognized malware attacks, ensure to employ reputable antivirus and anti-malware solutions. With these software, your system gets a basic line of defense.
Tip 6. Data Encryption & Monitoring
Do not forget about the encryption of sensitive data. Check that the customer’s data is absolutely safe and secure during transmission. Also, monitor your devices continuously. Keep looking for any unusual activity to avoid mishaps.
The Bottom Line
POS systems are ever evolving, and with that, the threats to their privacy are also increasing. So, in these crucial and data-driven times, it is important to follow these practices. This will drastically reduce the risk of POS malware attacks and ensure that your business and customer data stay protected.
We hope this guide will help you in making an informed decision. Also, you can contact our customer support at <email> to get a quote on a customized POS system for your business. At POS Circle, we are always ready to help you ensure your transactions are secure, your operations run smoothly, and your customers can shop with complete confidence.
Frequently Asked Questions
1. What are the most common security risks in POS systems?
POS systems are often targeted via malware, card skimming, and unauthorized access. Attackers aim to steal payment data, customer details, or compromise connected networks.
2. How can malware affect a POS system?
Malware can capture sensitive payment data directly from memory before encryption. It may spread through unsecured networks or outdated POS software.
3. Why is encryption important for POS security?
Encryption protects payment data by making it unreadable to hackers. Using end-to-end encryption ensures sensitive information is secure during transmission.
4. How does employee negligence create POS vulnerabilities?
Weak passwords, unsecured logins, or ignoring updates can open the door to attacks. Training staff on best practices greatly reduces such risks.
5. What are the best ways to prevent POS breaches?
Use secure networks, enable multi-factor authentication, update software regularly, and monitor transactions for unusual activity. Combining measures creates stronger protection.
