Protection for ATMs
Data breach and
frivolous lawsuit protection
We’ve all seen the headlines these past few years regarding large retailers with recognizable names who have fallen victim to massive data security breaches. These breaches have cost those retailers millions of dollars in fines and compliance costs, as well as immeasurable loss to their business reputation.
ATMs are not immune to this threat. ATMs are subject to skimming schemes as well as many other types of possible cardholder data threats. ATMs are also subject to a completely different threat by possibly becoming the victim of an unscrupulous lawsuit commonly known as "sticker lawsuits”. These lawsuits challenge the ATMs compliance with the requirement to post a physical notice on the outside of your ATM indicating that the cardholder might be charged a fee for their transaction. Most of these cases have appeared to be nothing more than a shakedown from a plaintiff’s attorney looking for a settlement. In some cases it even appears that the surcharge notification decal may have been removed from the terminal before a transaction, thus creating a violation. These nuisance lawsuits are resulting in settlements in the tens of thousands of dollars.
Payment Alliance International (PAI) has created the comprehensive PAI Secure ATM program to facilitate compliance with these regulations, as well as to protect ATM owners from these potentially devastating economic threats. Our program will walk you through the compliance process, providing availability to our PCI Hotline, which is staffed with knowledgeable Compliance Agents. PAI Secure provides you with PCI (data breach) Indemnification Coverage of up to $50,000 per incidence for your entire business – no matter how a card transaction is accepted electronically, as well as protection from these ATM "sticker lawsuits” in the amount of up to $50,000 per incident.
The Problem
- State and Federal regulations hold the "Operator" liable for violations of fee notice sticker requirements.
- The operator is typically determined to be the owner of the ATM
- Damages for violations include all surcharge amounts for the period under which the ATM was not in compliance, as well as attorney fees
- Sticker lawsuits are increasing rapidly and this type of litigation is acknowledged as one of the fastest growing areas of opportunities by plaintiffs' attorneys
- Few law firms have expertise in this area and legal defense fees can cost as much as the settlement itself
The Solution
- Sticker law suit and data breach coverage (including skimming) to the operator of the ATM for the settlement, fines, awards and plaintiff's legal fees up to $50,000 for each incident for every ATM enrolled in the PAI Secure ATM program.
- Legal defense coverage for both operators and non-operators up to $17,000 and $10,000 respectively, for each law suit when the ATM has been enrolled in a the PAI Secure ATM program.
What you can do to protect yourself at the ATM
- Always change your ATM’s password from the original default password provided at time of purchase.
- Give employees Admin Passwords only.
- Check your decals on the ATM regularly and keep dated photos on file showing decals in place.
- Never let anyone unauthorized "service” your ATM.
- Consider new auditable time released locks that allows you to track access to the ATM by each user.
- Consider more secure communications such as wireless or via the internet.
- Clearly display security cameras that monitor ATM activity.
What you can do to protect yourself with your card payment devices
- Adhere to PCI Data Security Standards
- Educate your employees
Contact us online or at 877-271-2627 to learn more about the program. Even if you don't process through PAI, you can still take advantage of this great program.