Stealing the electronic data off the magnetic stripe on credit cards (called skimming) is big business. To curtail these activities at your business, discuss with cashiers the problem. Tell them people may offer them cash to swipe a customer’s credit card through their card reader. Let them know this is a felony that will be prosecuted. Tell them you review the closed circuit video system looking for this activity (if you don’t have video equipment consider getting it).

One of the best practices is to make unannounced surprise visits to your business, specially during the night and graveyard shifts. Go directly to the cashier area and look for the following:

• Battery powered skimmer, about the size of a pack of cigarettes, may be worn as a pager. It will have magnetic stripe reading slot in it for reading credit cards.
• A laptop computer near the POS terminal. Never allow employees to bring a computer to work, and never allow one in the POS area.
• An IPod. These devices have a USB connection which makes it easy to download sales figures, bookkeeping information, customer lists and credit card information and other useful data to steal and use your identity or that of your business.

Any other computer paraphernalia such as floppy disks or an unattached cable not usually there.

* You should forbid by policy that employees may not bring cell phones, pagers, laptop computers, Walkman/Discman, IPods, or other electronic devices to work, especially those with USB connection ports.

Keep in mind that you, the small business owner, could be held liable as for the acts of your employees should fraud take place at your operation. A firm, enforced policy is your best protection from thieves who work as teams.