One breach of your point of sale (POS) system could damage your business and customer trust overnight. Your POS system handles sensitive details like payment card data, names, addresses, and more; protecting them at all costs is essential.
It’s a grim statistic, but it’s worth pointing out that nearly 60 percent of breached small businesses close permanently within six months of an attack, according to the National Cyber Security Alliance.
But with robust POS security measures, you can mitigate attacks and lock down your point of sale environment.
In this article, we’ll highlight how you can identify vulnerabilities, key areas of focus for your security efforts, and best practices to safeguard customer and point of sale data. With POS security, you can operate with confidence rather than fear, knowing your systems are secure.
You rely on your POS system to process payments and manage daily operations. These systems handle extremely sensitive customer information like names, credit card numbers, addresses, phone numbers, and purchase history.
Unfortunately, POS systems have also become a prime target for hackers. But before we get into how you can protect your customers’ data, let’s touch on what POS security is. It refers to protecting your POS system, software, networks, and data from unauthorized access, viruses, and cyber threats.
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You’ll need both physical and digital safeguards to protect everything from your checkout terminals and payment processing systems to your servers and cloud networks. Sounds like a complex job, right? It is! But it’s worth investing in robust security to keep your business and customers safe.
Without robust security:
Retailers are switching from legacy on-premise POS systems to cloud-based ones for more flexibility and management. But without proper security, the cloud also poses new vulnerabilities. You need to vet cloud POS providers to make sure encryption, role-based access controls, and diligent backups are in place.
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Cybercriminals use malware, skimmers, password crackers, unpatched software bugs, and more to get through POS defenses. Unfortunately, attacks get more sophisticated as security improves. To mitigate risks, you need to keep your systems updated, limit access, monitor activity logs, and consider cyber insurance.
Any great security plan starts with a risk assessment. Take a step back and look at your existing POS setup to identify weaknesses and gaps in your defenses. Start with areas that deal with sensitive customer data.
In the modern age, safeguarding your POS data isn’t just best practice, it’s essential. Your POS system handles sensitive customer and payment card data, and if you want to maintain a positive reputation for your store, you must keep that data secure. Let’s take a look at some top processes you can use to secure your POS and customer data.
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The first step to secure your POS data is using dedicated terminals. Unlike shared devices or computers, dedicated terminals are exclusively designed for transactions. This step is crucial because shared devices pose a larger target for threats. Dedicated terminals trim the attack surface, making it harder for cybercriminals to breach your system.
Investing in dedicated POS terminals helps you create a secure environment for processing transactions, giving you an edge in your efforts to bolster your defense against potential threats.
Another best practice is to install a firewall. Think of a firewall as the gatekeeper of your POS network. It's like the bouncer at a club, determining who gets in and who stays out. Here's what a firewall does:
And while we're on security, don't forget about password protection. Implement robust password policies to add an extra layer of defense.
As we touched on in the last point, employees need access to some data in your system to do their jobs… but most of them won’t need access to everything. It's vital to grant access only to those who need it. Here's how you can do it:
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By implementing these measures, you're ensuring that your POS system is only in the hands of those who genuinely need it, reducing the risk of insider threats and employee theft.
Encryption is an additional layer of security you can use to turn sensitive data into unreadable code while it’s being transmitted. This encrypted data is useless to cybercriminals in the event of a breach.
Use encryption processes to secure payment card data and other sensitive information stored within your POS system. Even if a cybercriminal manages to breach your defenses, the stolen card data will be nothing more than gibberish without the decryption key.
The last important piece to remember related to POS security is that security isn’t a destination: it’s a journey. Continuous updates and monitoring are needed to keep your system secure. Some areas to keep an eye on include:
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Remember, the security landscape is always evolving. By staying proactive and following these best practices, you can fortify your POS system, protect customer data, and keep your business running smoothly.
A critical consideration in point of sale security is your POS provider. Your POS system is the nerve center of your store’s operations, and an all-in-one POS solution will house all your inventory, customer, and transaction data.
Suppose you want to ensure your processes are as secure and efficient as possible. In that case, you need to select a reputable, transparent POS provider with the features you need for your business.
Start your selection process by delving into the provider's reputation. Customer reviews and testimonials can offer valuable insights. Look for reviews from businesses similar to yours –– their experiences can be telling. It's not just about the technology; it's also about the provider's track record in terms of reliability and customer satisfaction.
You should also ask the provider about their data security practices. How do they protect and store customer information? What measures do they have in place to prevent data breaches? Don't be afraid to dig deep; after all, your business' reputation is on the line.
Remember, transparency is non-negotiable. Your POS provider should be open and honest about their practices. Ask for clear explanations of their processes, from data handling to disaster recovery plans. A reputable provider will have nothing to hide and will gladly share the details you need for peace of mind.
Finally, ask one final question: do they offer 24/7 support? Chances are your store isn’t only open from nine to five, and issues can arise anytime. Having round-the-clock POS tech support can distinguish between a minor hiccup and a major problem. Ensure your POS provider is there for you when you need them most.
Your customers are at the heart of everything you do. In today's environment of ever-evolving cybersecurity threats, ensuring the security of customer data should be a top priority for any business with a POS system.
Your customers expect their data to be safe and secure when they engage with your business. Their trust is your most valuable asset, and protecting their data is a fundamental part of maintaining that trust.
Neglecting POS security can have dire consequences for your business. A customer data breach can result in heavy fines, reputational damage, and the disruption of business operations. It's not just about compliance: it's about protecting your customers and your business.
At first, POS security might seem intimidating, but it's totally manageable with a systematic approach. Start by identifying your weaknesses through comprehensive risk assessments, educate your staff to become security ambassadors, and implement layered defenses, including firewalls, access controls, encryption, and vigilant monitoring.
Lastly, ensure your POS provider is a strong partner in everything from operations to security. Partnering with a reputable provider, like POS Nation, can be a game-changer for your security efforts. As a trusted provider, POS Nation offers solutions to protect your business and customers.
To learn more, check out our Retail POS Buyers' Guide, a free resource designed to help you explore the hardware, software features, and tools you may need from your POS provider.