Point-of-sale (PoS) systems have transformed the retail business and streamlined the entire process of transactions of companies.
However, in recent times, they have become the focal point of malicious activities conducted by cyber criminals since they hold information related to card payments like credit cards and debit cards.
PoS malware is maliciously designed software that aims to take control of PoS systems. It is a threat for businesses, customers, and financial institutions, and thus, poses a serious concern nowadays.
PoS malware
PoS malware is any kind of malware that is developed to gain access into a point-of-sale system and infect it.
A point-of-sale system is typically combined with peripherals like payment processors, card readers and often stores credit card information, PINs, and other personally identifiable information (PII) of customers involved in the transaction. The common intent is the theft of financial information.
Typically, PoS malware is delivered via phishing attack or through compromised third-party software. PoS malware can also penetrate the system itself via vulnerabilities that have not been patched. Once installed, it silently captures payment information and transmits it back to the attackers without the business owner or customer knowing that a breach has occurred.
The available categories of PoS malware are divided into RAM scraping malware and keyloggers. These two are most common types. RAM scraping malware collects data from the memory of the system, whereas the keyloggers track keystrokes entered by users.
How PoS Malware Works
PoS malware typically operates through a few steps:
1. Infection
For these types of malwares, entry into the PoS system is allowed through a variety of attack vectors-to include infected email attachments, malicious downloads, or exploitation of known vulnerabilities in older software.
2. Data Capture
Inside the malware monitors the system memory or captures keystrokes while it awaits payment information during a transaction.
For most of these malware programs, this information is stored in the RAM within the system; hence, the malware can retrieve this information.
3. Data Outflow Theft
Data is transmitted back to an attacker-controlled server and sells it on the dark web or uses it for fraudulent transactions.
These attacks have some serious financial and reputational effects. For instance, high-profile breaches were reportedly experienced at Target and Home Depot.
PoS Malware Protection
Only an active security measure and regular or continuous surveillance, coupled with employee education, can ensure protection against PoS-based malware.
The following are some best practices for protecting a PoS system:
1. Use Up-to-Date Software and Hardware
The operating systems in PoS software and hardware must be up to date on all the latest security patches. Most PoS systems are vulnerable to attacks due to old operating systems or unpatched applications.
Keep all software updated and replace hardware with known vulnerabilities with the newer version.
2. Implement End-to-End Encryption
Encrypt all the payment data with end-to-end encryption so that the information is not only encrypted at rest but is also encrypted in transit;
hence it becomes especially difficult for cyber thieves to intercept or steal the data even they are successful in breaching.
3. Segregation of Networks
Separation of PoS systems from the rest of the organization’s network, especially critical systems such as databases and internal communications.
This principle was to segregate the network so that if an infection were to occur, it would not easily spread to spread all over the organization.
4. Install and Configure Anti-Malware Software
Utilize credible anti-malware and antivirus software in the market that has the potential to support the PoS systems. The system should be scanned regularly with the known threats and configured to auto update.
5. Monitor Transactions and Logs
All transaction data of the PoS system and logs should be continuously monitored for abnormal behaviours. All discrepancies or spikes in these activities should be reviewed instantly.
6. Employee Training:
Educate employees to recognize phishing e-mails and other social engineering tactics used by cyber-crooks to gain the initial foothold in systems.
Human error is often the weak link in a company’s defence mechanism, so developing the culture of being vigilant is very important.
7. Compliance with the Standards
This is based on PCI DSS. This will be a guideline on the security of the payment data. This mainly serves to mitigate the risks associated with data breaches and ensure that the best practices in security are put in place.
Conclusion
PoS malware poses an increasingly grave threat to businesses that carry sensitive payment data.
The danger of an attack on PoS systems is equally high: unexampled financial losses, damage to a company’s reputation in the eyes of clients, and even the encroachment on customers’ personal information.
All this can be avowed if a business develops protection measures on the level of software updates, encryption, network segmentation, anti-malware tools, and employee training.
Prevention in the retail and payment industries is of utmost importance because cybersecurity in the industry is more serious than ever, to be on top of cyber theft.