Verifone speaks out about Square mobile payment security

Verifone’s CEO email blasted notices about the Square mobile payment lack of security this week, even creating a web site to futher describe the issue. Basically Square users can turn phones into card skimmers.

“The issue is that Square’s hardware is poorly constructed and lacks all ability to encrypt consumers’ data, creating a window for criminals to turn the device into a skimming machine in a matter of minutes,” states CEO Douglas G. Bergeron. Further, “A criminal signs up with Square, obtains the dongle for free and creates a fake Square app on his smartphone. Insert the dongle into the audio jack of a smartphone or iPad, and you’ve got a mobile skimming device that fits in your pocket and that can be used to illegally collect personal and financial data from the magnetic stripe of a payment card. It’s shockingly simple.”

Consumers need to beware who they are doing business with as mobile payments grow. If you don’t know the person or the company, avoid giving your card information out. Just like at the store, consumers don’t know who a merchant is processing with so it boils down to trust.

Acceptable alternate solutions we offer are PAYware Mobile, RoamData, and our own CenPOS mobile solution.  CenPOS mobile eliminates fraud by both users and devices:

  1. Admin can shut down any user remotely, immediately disabling the employees’ ability to process any transactions.
  2. The swipe device encrypts at the point of magnetic reader.
  3. Coming soon: swipe device encryption key to  CenPOS platform. Lost or stolen card readers will be useless outside CenPOS.

3D Merchant offers mobile payment services to CenPOS clients and also merchants processing at least $1,000,000 annually.