FICO: Debit card compromises skyrocketed in 2016
Payment card theft continues to wreak havoc on retailers and shoppers, alike.
In fact, the number of debit cards compromised at United States-based ATMs and merchants rose 70% in 2016, while the number of hacked card readers at U.S. ATMs, restaurants and merchants rose 30% — the highest level in the history of the FICO Card Alert Service, which monitors hundreds of thousands of ATMs and other readers in the U.S.
Not only do these statistics represent the highest level of card theft in the history of the report, it also represents a 546% increase in compromised ATMs from 2014 to 2015.
For example, in 2015, the most compromises occurred at non-bank ATMs, such as those in convenience stores. About 60% of compromises were at non-bank ATMs, with the rest occurring at bank ATMs or point-of-sale (POS) devices, such as card payment machines at retailers. (These figures cover only card fraud occurring at physical devices, not online card fraud, the study said.)
The average duration of a compromise continued to fall — on average, an ATM or POS device would be compromised for 11 days, compared to 14 days in 2015. The 2016 average duration is less than a third of the aver-age duration in 2014, 36 days. The average number of cards affected by a single compromise was cut in half, the study reported.
"As the last few years have proven, skimming technology and know-how have improved and are more accessible to the general population, so we will continue to see increases in compromises and the speed at which they occur," said TJ Horan, VP of fraud solutions at FICO. "With some of the confusion we still have at various POS checkout locations, it's still im-portant for consumers to be on alert.”
Survey: Unclean restrooms can have negative impact on business
Retailers looking for a competitive advantage in these competitive times should consider their restrooms.
Half of U.S. adults believe that unclean restrooms at a company give a number of negative messages about how the company is run or how it treats its customers, according to Bradley Corp.’s annual Healthy Hand Washing Survey. And 56% of respondents said they are unlikely to return to a business — or will think twice about doing so — after experiencing an unclean or unpleasant restroom, they either will not return to that business or will think twice about doing so.
Nearly all Americans (92%) see a direct relationship between the quality of a company’s products and services and the quality of its restrooms. This is further supported by the fact that 88% believe that if a restaurant has unclean restrooms, the likelihood is that the kitchen is also unclean.
The survey also revealed that Americans don’t like touching things in public restrooms. Instead, they will various techniques, such as using a paper towel to operate a faucet, to avoid coming into contact with surfaces in a restroom.
Cleanliness topped the list of restroom improvements survey respondents would like to see, followed by touchless fixtures and better stocking of supplies, such as toilet paper, soap and paper towels.
“Most everyone has had a bad restroom experience and, unfortunately, it's usually something you don't forget," said Jon Dommisse, director of global marketing and strategic development at Bradley Corp. "The good news is that manufacturers, like Bradley, do listen to consumers' concerns and work to address them by creating new and innovative products."
Later this week, the nomination of Alexander Acosta to be the next Secretary of Labor will likely be voted out of the Senate HELP Committee and head for confirmation on the Senate floor. The administration made headlines just prior to his confirmation hearings outlining cuts to the Department of Labor budget in the neighborhood of $2.5 Billion or roughly 20%.
If the cuts are sustained, they likely will come at the expense of job training and similar programs. One area that we know will be pared back, one way or the other, is enforcement, specifically in the Wage & Hour division.
The Obama Administration pursued a program of zealous enforcement of violations, specifically “working off the clock” and meal and rest breaks whereby they classified such infractions as “wage theft.” While the Acosta said little in this regard during his confirmation, hearing, operators and other retailers can expect a “climate change” in the enforcement environment.
But before business owners think the heat is off, think again. Since the labor community was quite supportive of the Obama administration’s approach to enforcement, they put relatively little pressure on enforcement mechanisms at the state and local level.
That will change now. We should expect many state attorneys general, especially those in big, blue populous states like California, New York, Illinois and others to get into the game and pick up the mantle. New York Attorney General Eric Schneiderman has already been aggressive in this space and filed numerous actions against employers, even putting a franchisee from a prominent restaurant chain in jail. Schneiderman and others will now ramp it up.
Expect “wage theft” to become a common refrain among state and local agencies, as well as policymakers. Enforcement is enforcement and whether it happens at the federal or state/local level, it will happen nonetheless.
Plaintiffs attorneys will also get in the game in a bigger way and fill the gaps. Operators and retailers need to maintain vigilance when it comes to compliance and in this regard, pretend the election never happened.