Commercial Insights

How businesses can stop fraud at the point of sale

Fraud can prove expensive for businesses but taking a few simple precautions can help reduce exposure.

Year after year, the numbers for credit and debit card fraud continue to climb. In the United States, credit card fraud is expected to top $12.5 billion in 2025 alone. What’s more, the average fraudulent charge on credit or debit cards is $100, according to Security.org.

An incident of fraud might be small, but every time a fraudster slips through business defenses, it chips away at margins, creates exposure to compliance risk, and erodes customer trust.

"Point-of-sale (POS) fraud doesn’t just impact a company’s bottom line—it can damage customer confidence and create long-term reputational risk," said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “That makes the point of sale more than a transaction hub, but rather a first line of defense against fraudsters.”

Six key steps to stop POS fraud

With the right practices and technology, businesses can reduce fraud at the point of sale.

• Upgrade your equipment to allow contactless payments. Modern payment technology is key when it comes to combatting fraudsters. Terminals that enable contactless payment will reduce physical card handling and minimize exposure to any skimming devices. Further, upgrades to POS equipment can help ensure compliance with global security standards.
• Always obtain the CVV number. The Card Verification Value (CVV) on the back of the card is a critical security feature. Always require this three-digit code for card-not-present transactions. This simple precaution helps confirm the cardholder has the physical card, thereby reducing the risk of fraudulent use.
• Verify the card is signed. This is a simple but often overlooked step. An unsigned card should be treated as a caution flag. If the signature panel is blank, ask the customer to sign it and then verify the signature against a valid ID to prevent unauthorized use.
• Exercise caution and common sense. For example, if the chip won’t read after multiple attempts, don’t bypass security by forcing a swipe. Instead, request another form of payment or verify the cardholder’s identity. Fraudsters often exploit the good intentions of merchants in these situations.
• If you’re a consumer, use the card’s LockIt function if compromised. If you suspect a card has been compromised, act immediately. Many issuers, including Regions, offer a LockIt feature that allows a cardholder to temporarily prevent unauthorized transactions.
• Stay informed and train employees. Fraud prevention is a team effort. It’s important to train staff regularly in best practices and threats as they emerge and keep up with the latest bulletins and information on new scams. Many times, awareness and vigilance at the point of sale play an important role in stopping fraud before it happens.

"Regions always emphasizes that creating a culture of awareness within a business is one of the most effective ways to prevent losses, especially when it comes to staying current with cybersecurity developments. After all, fraudsters are constantly adapting, and businesses need to keep pace,” Taylor said. “Ensuring a company’s security at the point of sale doesn’t need to be overwhelming. Taking a few straightforward precautions can save your company and customers thousands of dollars every year.”

Ready to help

Visit Regions.com/stopfraud or Regions.com/fraudprevention today. Or contact a Regions relationship manager or a treasury management officer for effective strategies when it comes to making your business safe.