Home / Latest blog posts from LCU / 2016 / Ghost Terminal Transactions BEWARE Written by Deepthi Satheesan
Beware of transactions that you do on your Visa card that do not get debited to your LCU account. You are not getting anything for free.
These transactions may have been processed by a ghost terminal. The card details and PIN entered by the cardholder are stored on the device. Then this information can be using fraudulently.
With these ghost terminals the transaction will never go online and is in effect a non-existent transaction. The terminal in essence is a shell only, which acts and behaves like a terminal but never performs a transaction.
The cardholder has no idea it is not a legitimate transaction; as far as they are concerned, they have made a transaction and either got a receipt, or a message on the terminal screen of a connection error and paid by cash.
If anything like this has happened to you please immediately advise LCU and we will arrange a new card and place a stop on the current card to avoid any possible fraud.
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As a seasoned expert in the field of financial security and electronic transactions, I bring a wealth of knowledge and firsthand expertise to shed light on the critical issue raised in the blog post authored by Deepthi Satheesan. My extensive background in cybersecurity and financial technology enables me to provide valuable insights into the concept of ghost terminal transactions and the potential risks associated with them.
The article warns readers about transactions made on Visa cards that do not reflect in their LCU (presumably a financial institution) accounts. This discrepancy is attributed to the possibility of these transactions being processed by what is referred to as a "ghost terminal." Here's a breakdown of the key concepts discussed in the article:
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Ghost Terminal Transactions:
- Definition: Ghost terminal transactions involve the use of a terminal that appears to process transactions but does not actually perform any legitimate transaction.
- Modus Operandi: Card details and PIN entered by the cardholder are stored on the device, allowing for potential fraudulent use.
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Non-Existent Transactions:
- Description: Transactions processed through ghost terminals are, in essence, non-existent. They do not go online and are not recorded in the user's account.
- Deceptive Nature: The terminal mimics the behavior of a legitimate transaction, providing the cardholder with a receipt or a connection error message on the terminal screen, creating the illusion of a completed transaction.
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Fraudulent Use of Information:
- Risk: The stored card details and PIN can be exploited for fraudulent purposes by malicious actors.
- Lack of Awareness: Cardholders may be unaware that the transaction was not legitimate, as they receive apparent confirmation through a receipt or a terminal message.
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Immediate Action Required:
- Advice to Users: In case individuals experience such discrepancies, the article advises them to promptly notify LCU.
- Preventive Measures: LCU will arrange for a new card and place a stop on the current card to prevent potential fraud.
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Financial Security and Risk Mitigation:
- Importance of Vigilance: Users are encouraged to remain vigilant and report any suspicious activity to their financial institution promptly.
- Proactive Measures: LCU's response involves taking proactive steps to mitigate the risk, such as issuing a new card and implementing a stop on the compromised card.
In conclusion, the article serves as a crucial warning to individuals using Visa cards, emphasizing the need for heightened awareness regarding potential ghost terminal transactions and the importance of taking immediate action to mitigate the risk of fraud. This aligns with broader efforts in the financial industry to enhance security measures and protect users from evolving cyber threats.
FAQs
Some banks perform 'credit checking' with a 'ghost charge'. This is in no way a real charge, but only a request to your bank to 'reserve' this amount of money. These ghost charges are sometimes visible on your online credit card statement.
Is there such thing as a ghost transaction? ›
Ghost debit or credit cards may be used online to make purchases. They can also be used to make purchases from suppliers and vendors by telling them the numbers. The purchases will then be charged to the originating departments and subtracted from the company's account or added to its credit card balance.
What is a ghost charge on a debit card? ›
A ghost authorization is when a merchant asks a bank to authorize a small amount against a customer's credit card or debit card through their merchant account prior to authorizing their actual purchase.
What is a ghost authorization? ›
Sometimes called “ghost authorizations,” misused authorizations are transactions that are neither settled nor reversed properly. The fee attempts to cut down on such authorizations. Therefore, if you don't follow a Visa authorization with a matching clearing transaction, you'll incur the Misuse of Authorization Fee.
What do I do if I see a transaction that I didn't make? ›
Contact your bank right away. To limit your liability, it is important to notify the bank promptly upon discovering any unauthorized charge(s). You may notify the bank in person, by telephone, or in writing.
Why am I seeing a transaction I didn't make? ›
If you see a charge that you believe you did not make, it may mean that someone has gained access to your account information and is making fraudulent purchases. Although identity theft and fraud are rising, it is important to note that not all unknown transactions are unauthorized charges.
What is a dummy transaction? ›
Dummy payments are payments made from a payment bank account that isn't a real bank account.
What is ghost banking? ›
A ghost bank account refers to a financial account opened and operated with a high level of secrecy, often with the intention of concealing the identity of the account holder and the source of funds.
What is a hidden transaction? ›
Hidden transaction don't appear in the Bank Feeds window. You can't delete bank feed transactions, only hide them. Examples of transactions that you would hide include: transactions left over from when you started using bank feeds. transactions you've manually entered and already reconciled.
Why do I keep getting random charges on my card? ›
Credit card fraud can happen if someone physically steals your card or virtually hacks your account, and it can be a serious headache to resolve. If you're a victim of fraud, you may incur unauthorized charges that can result in steep bills.
Are You Liable for Unauthorized Debit Card Purchases? In most cases, federal law limits your liability for unauthorized debit card purchases to $50, provided you report the fraud within two business days of discovering it.
Why do I have random charges on my debit card? ›
Unauthorized charges on your bank statement are among the clearest warning signs of debit card fraud — and even identity theft. With enough of your personally identifiable information (PII), criminals can gain access to your debit account, open new accounts in your name, and drain your savings account.
Can someone charge your card without authorization? ›
First of all, a business can't charge your card without your permission. It would need to get your authorization first. This holds true whether you're paying with your smartphone or for any other online card-not-present transaction.
How does a ghost card work? ›
A ghost card is a type of credit or debit card that allows you to assign different card numbers to different departments within your organization. The individual numbers allow the departments to make authorized purchases for your company, but the numbers themselves are not usable by either internal or external thieves.
What is a virtual ghost card? ›
Ghost Virtual Card is a virtual card that automatically closes after the first spending. It allows you to shop on websites where you are skeptical of their security. After your first spending, your card is closed and cannot be used again. You can create your Ghost Virtual Card in seconds.
What is a ghost checking account? ›
Financial Dose for Needies
A ghost bank account refers to a financial account opened and operated with a high level of secrecy, often with the intention of concealing the identity of the account holder and the source of funds.
What is a shadow transaction? ›
If a shadow amount is marked in your bank account, it means that a deposit or transaction has been initiated but has not yet been cleared or realized by the bank. In such cases, the bank may have certain policies and procedures in place regarding the handling of shadow amounts.
