Recent headlines have been riddled with data breaches of large retailers such as Target, Staples and Home Depot, along with big restaurant chains like Dairy Queen, P.F. Chang’s and most recently, Chick-fil-A. In each of these instances, consumers’ card data was accessed through the Point of Sale.
For a hacker, these corporations are prime targets due to the vast amount of information they can collect, but it turns out many more small to medium sized businesses are attacked than the headlines would make it seem.
A recent article by TechCrunch.com describes why the “it won’t happen to me” mentality doesn’t cut it, while most SMBs just don’t have the resources to afford the security necessary to keep their customers’ information safe.
Here’s why they’re wrong:
Cloud based POS systems, including all of the tablet based systems we’ve reviewed, don’t store card information locally. There’s nothing to steal because the information is encrypted by the card reader immediately when swiped, then sent off to a gateway and processor through the cloud.
Here is a quote directly from MagTek’s website, the company that has created the most popular mobile reader to work with iOS devices:
“The iDynamo encrypts the data inside the read head, closest to the magnetic stripe and offers additional security layers with immediate tokenization of card data and MagnePrint card authentication. This layered approach to security far exceeds the protection of encryption by itself, decreases the scope of PCI compliance, and reduces fraud.”
Especially for small to medium sized businesses, steps toward the cloud and steps toward increased security are one-and-the-same.