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Frank on Fraud

People Are Falling For New Popular “PIN Retry” Scam

A new tricky scam targets restaurant goers, fooling them into divulging their PINs and charging thousands of dollars for small-ticket items.

It’s called The PIN Retry Scam, and Reddit user Scertic posted a warning about it this week. The scam occurs where you might be less vigilant about your transactions – restaurants, airports, and typical tourist locations.

How The Scam Unfolds

The scam involves multiple steps that consumers are guided through by the perpetrator.

Step #1 – The Fake Transaction

You pay for a small purchase, like a soft drink, with your debit card.

Step #2 – The Sneaky Switch

Instead of entering the actual amount of your purchase, the scammer (often posing as a waiter or cashier) skips this step and proceeds directly to ask you to enter your PIN.

Step #3 – You Unwittingly Enter Your PIN

You enter your PIN, thinking it’s a normal part of the transaction process. However, the POS system interprets this as the transaction amount.

Step #4 – The “Failed” Transaction:

The scammer then informs you that the transaction has failed and asks you to try again.

Step #5 – The Double Whammy:

When you re-enter your PIN, you’re actually confirming the fraudulent transaction for an amount equal to your PIN, and you don’t even realize that it happened.

Congratulations, You Just Paid Over A Thousand Dollars For A Coke

Suppose a consumer buys a Coke for $8, and their PIN is 1234. Instead of paying $8 for the Coke, they’ve just authorized a charge of $1,234 to their accounts!

How To Protect Yourself

Here are five ways to protect yourself from this scam.

  • Watch the POS Carefully. Ensure it asks for the amount first, not immediately prompting for your PIN.
  • Check for Failed Transaction Receipts: If a transaction “fails,” insist on seeing a receipt for the failed transaction.
  • Verify Amounts: Double-check the amount on the screen before entering your PIN.
  • Be Wary in High-Risk Locations: Exercise extra caution when purchasing in tourist areas or unfamiliar locations.
  • Monitor Your Statements: Regularly check your bank statements for any suspicious charges.
  • Act Quickly: If you notice any unauthorized transactions, immediately report them to your bank.

The bottom line is that you shouldn’t feel rushed when entering those PINs or signing receipts, which is why this scam works in the first place!