Just like in a James Bond Film

In late 2008, electronic payment service RBS World Pay revealed that a gang of hackers had broken into its computer systems, stolen information to help them create cloned debit cards, boosted their withdrawal limits and stolen huge amounts of money from ATMs around the world.

Mules operated by the gang stole a total of $9 million from more than 2,100 ATMs in at least 280 cities worldwide. All it took them was a jaw-dropping 12 hours to pull off their coordinated heist.

Some were wearing disguises with wigs and facial hair altering their appearance. They dressed nicely while others dressed shabbily, creeping around trying to go unnoticed. Mostly they were brazen, boldly executing the crime as if nothing happening were out of the ordinary.

A key member of the cybercriminal gang arrested for the crime wasn’t your typical low-profile underworld gangster. Amongst other things, he purchased a luxury car and two apartments in the Russian city of Novosibirsk before being caught in 2009.

At the time of the robbery, acting United States Attorney, Sally Quillian Yates, said that it was "perhaps the most sophisticated and organized computer fraud attack ever perpetrated."

The criminal gang is alleged to have created counterfeit cloned debit cards with the stolen information, but they didn't stop there. 

They are supposed to have cracked the encryption security used to protect RBS World Pay PIN numbers, and raised the level of funds available on compromised accounts. 

Some accounts reportedly had their daily withdrawal limits boosted to up to $500,000.

This is said to have allowed low-level members of the gang to steal over $9 million from more than 2,100 ATMs in at least 280 cities worldwide, in less than 12 hours.

The sheer audacity of this criminal plot is mind-boggling. The crime ring stole an extraordinary amount of money over a short time in a well-organized heist that involved split-second timing.

The criminal scheme was executed by means of electronic subterfuge via computers; even then the number of criminals it took to successfully pull off the brazen heist must have been numerous. 

2100 ATMs divided by 280 cities around the world equals 7.5 ATMs per city on average. In order to withdraw $9,000,000.00 in under 12 hours from 2100 ATMs around the world, that would entail hitting an average of almost 3 ATMs every minute during those 12 hours.

At 3 ATMs a minute it would take one crook per each ATM in order to execute the transactions successfully, which would be 3 bad guys multiplied by 280 cities, totaling 840 thieving conspirators.

Perhaps we’ll be hearing about the latest exploits of James Bond after all, as he saves the world economy from dastardly villains committing a dramatic modern day true-life caper.

Rick Berry – http://www.abcmobilepay.com - 877-258-5223 - rick@abcmobilepay.com

Marching To The Mobile Drumbeat

Mobile Revolution Commanding Attention

The number of smartphones has been doubling every year, and by the end of this year will exceed 125 million in the U.S. alone, about half of all mobile phones on the market in this country. In addition, Apple’s iPads have approached almost 20 million units sold to date. And they seem to have altered the way we perceive and interact with mobile commerce.

Consumers have quickly made the transition and are learning to love mobile commerce apps and web sites. This year, they'll buy over $6 billion worth of goods and services on web-enabled phones and tablets, doubling last year's number, and next year that number is expected to double again.

Online merchants are already cleaning up on this second e-commerce revolution. About 25% of the largest e-retailers already have a mobile site or app, most of those launched in just the last year or two. Another 25% are preparing to implement mobile commerce soon. But fully half are not ready to make the move, and virtually all second-tier e-retailers have no mobile program what so ever.

They all need one—and fast. Estimates are that 15% to 20% of all visitors to e-commerce web sites NOT equipped for mobile are coming from consumers shopping from smart phones and tablets. If you don’t have a mobile initiative in place you had better adopt one fast or you risk losing business to your competition, perhaps forever.

Once they see your site isn't optimized for mobile phones, they just leave and they may never come back. To avoid this crippling blow to your e-retailing business, you simply must make your move toward mobile commerce.

Brick & mortar retailers that have initiated mobile POS payment abilities in their retail operations, such as Apple and Nordstrom, have started a wave of momentum that has IT departments across the nation rushing to develop mobile payment initiatives.

Mobile in retail has received a spectacular reception because it produces a much more pleasing customer experience for one reason. It enables a purchase to be made anywhere on site while capitalizing on the impulse buying decision.

For instance, a customer in a dressing room with a number of different items or sizes now instantaneously checks out right when the impulse develops. No gathering up of packages and trudging over to a waiting line of bustling customers at the point-of-sale, where by the time the clerk gets to them, an impulse decision may evaporate and a sale can be lost.

The customer now simply hands the attending sales clerk the desired item(s), the clerk scans the product barcode with a mobile infrared scanning and payment card-swiping device (which encases an iPod), then swipes the payment card, hands the device to the customer, the signature is captured (and photo if desired) on the device and is automatically embedded on the printed and/or emailed receipt.

Whether you’re a ‘brick & mortar’ merchant or an e-commerce online merchant, retail or wholesale, if you’re trying to sell in today’s marketplace you’d better have a mobile payment application or system in place or you risk missing sales and perhaps more.

The mobile revolution is marching to the insistent drumbeat of progress and convenience is it’s heralding call. When consumers use technology and become accustomed to it they begin to anticipate and expect it.

If the mobile revolution has caught your attention but you aren’t quite sure how to implement it, or capitalize on it, then you may want to Google ‘mobile POS payments news’. Find out how to take advantage of and utilize mobile before it marches right on by and you miss out completely on the mobile revolution.

Copyright 2008-2011 – Rick Berry - ABC Mobile Pay – http://www.abcmobilepay.com - rick@abcmobilepay.com - 877-258-5223

Mobile Competition Heating Up!

Mobile’s Retail Status Report

Earlier this year the mobile payments business shifted into a higher gear with the formation of Isis and the immediate success of the Starbucks mobile payment system, which proves that a “single brand” approach can work spectacularly.

Nordstrom also rolled out their version of Apple’s highly successful in-store mobile POS payment system. It has received a spectacular reception as it produces a much more pleasing customer experience by enabling a purchase to be made anywhere on site.

For instance, a customer in a dressing room with a number of different items, sizes and styles now instantaneously checks out. No gathering up of packages and bustling over to a waiting line of customers at the point-of-sale, and by the time the clerk get’s to them, an impulse decision may evaporate and a sale can be lost.

The customer now simply hands the attending sales clerk the desired item(s), the clerk scans the product barcode with a mobile infrared scanning and payment card-swiping device (an iPod is encased in the device), and then swipes the payment card, hands the device to the customer, captures the signature (and photo if desired) on the device and automatically embeds it on the printed and/or emailed receipt.

In the spring the mobile wallet segment heated up with the launch of Google Wallet, aimed at local advertising, with a strategy shift by Isis towards a platform approach. All year, the payments space also got a boost from Square’s stunning success. 



We should take a hard look at wallet business models and transaction models, with additional attention paid to retailer strategies that have become more public, as well as a deeper look at the retail terminal perspective, now that some leaders now will strive to achieve a critical mass of users with NFC being the trail blazer. 



Many providers are already looking at payment systems focused on the restaurant and other vertical segments. By capitalizing on technology and devices such as Apple’s iPad, we’re seeing popular new services such as ‘pay-at-the-table’ in the restaurant space, which mollifies the concerns of those aware of how easily and quickly cardholder information is skimmed.

Instead of anxious waiting customers, patrons are comforted that their card doesn’t leave their possession, thereby eliminating the chances of fraudulent skimming of cardholder information. And they are impressed with the merchant who is providing cutting edge and differentiating service. An iPad also displays the restaurant’s menu with rich colorful graphics or video.

Additionally, some systems originally focused on online transactions now are shifting towards “real world” applications as well. Watch out for PayPal, Google and Apple, each of whom has designs on the mobile payments retail space.

There are subject matter experts in some parts of the ecosystem, which are developing pockets of value in different market niches. 

We anticipate success by those that bring value with features and content to specific niches, such as retailer programs
 similar to Apple and Nordstrom.

Another niche is the medical space where an ISO such as ABC Mobile Pay is developing a ‘Patient Responsibility Calculator’ that captures payment at the point-of-service after determining the patient’s insurance carrier eligibility. Depending on the procedure provided it then calculates an accurate estimate of the patient’s final financial responsibility and enables the payment to be captured immediately or recurring payments can be set up.

Mobile wallet services and platforms
, mobile payment approaches
, terminal and device choices
, payment ecosystems
, business and revenue models

 are all competing to become an integral part of what will soon prove to be an important and ubiquitous activity in our everyday lives, mobile transactions.

For more information contact Rick Berry - rick@abcmobilepay.com - 877-258-5223 – www.abcmobilepay.com