Wholesale POS (Point of Sale) systems are built on the structure of the Retail POS system, but the former stand out for their diversified functionality. At the core of both systems is the need to create a system that is specific for the industry in which the select business is. In Singapore, there are a number of industries that have benefited from tailor-made wholesale POS systems, including but not limited to the fashion industry, the food industry and the beauty industry.
Additionally, wholesale POS systems feature trackers to keep up with clients who pay in installments and keep track of stock levels across multiple outlets. Overall, this saves businesses the hustle of manual work be keeping the inventory in check and providing real-time updates. While this offers many advantages, the diversity of the wholesale POS system predisposes it to data breach in different ways. Granted, this is a matter of grave concern, but it is also important to highlight some of the misconceptions that surround this topic. Below are the top 8 data breach misconceptions in the wholesale POS.
1. Wholesale POS systems can be made 100% breach-proof using strong passwords
This is the first data breach misconception that has been peddled for a long while now. While strong passwords are one of the ways to safeguard one’s business against data breach, they are not 100% foolproof. Typically, data breach of wholesale POS systems is made possible by hackers who intrude the systems and gain access to the information used in the payment processing system. this usually involves data found in credit cards used for swiping. It is therefore clear that while businesses can put up measures to reduce data breaches, it is impossible to be 100% breach-proof, especially with technological advancements.
2. Infringement of wholesale POS systems by low-value frauds does not matter.
Contrary to popular belief, data breach that reflects low value frauds has the capacity to transcend a business’s capacity to recover since this almost always continues for a long period of time. As such, any disparities picked up by the wholesale POS, whether of high value or low value, must be addressed as a matter of urgency.
3. The EMV payment system is not prone to data breach in wholesale POS systems.
This is yet another misconception in the use of wholesale POS systems. EMV refers to the use of cashless payment systems, an abbreviation for Europay, Mastercard, Visa respectively. While the current technology of ‘chip and pin’ smartcards does put in a degree of protection, this does not mean that it is impervious to data breaches. When customers use EMV payment system at unsecured POS systems, this does create a channel for data breach.
4.There are no qualms in using older wholesale POS systems provided they have been validated by PCI standards.
This is a myth that needs to be dispelled by the fact that even when systems are PCI (Payment Card Industry) validated, there is always the risk that they may not comply with the latest PCI-DSS (Data Security Standard) regulations. Using POS software that is not updated only increases chances of data breach across the different industries in Singapore.
5.Installation of firewalls is a foolproof way to avoid data breaches.
Firewalls are one of the recommended ways to prevent data breach, but more often than not, businesses do not realize the change of IT settings could inadvertently alter the firewall’s configuration systems. As such, it is not just enough to have functional firewalls; they must be checked and updated on a regular basis.
6.Only big businesses are targeted for wholesale POS data breach.
This couldn’t be further from the truth. Both small and big businesses are prone to data breaches at the wholesale POS level. The only difference perhaps, would be in terms of the public outcry and scrutiny on the affected companies.
7.Businesses are safer after data breach.
This is perhaps the most prevalent misconception about data breach in wholesale POS systems. While companies seize the chance to improve POS security post-data breach, this often fizzles out the moment the matter is away from public scrutiny. In many cases, the business slumps to its previous security state.
8.It is not necessary to vet employees working at POS stations once they are trained.
It is in fact very important to continuously vet employees manning POS systems from time to time. Adopting stringent security policies to consider who does what is one of the ways to safeguard wholesale POS.
Understanding the dynamics of wholesale POS enables businesses to invest in the right places and dispel most of the top 8 data breach misconceptions in the wholesale POS.