Hopefully, you'll realize some actions you should take to ensure your own business’ security.
Quick Answer:
What security risk do new business owners face when buying an existing merchant?
Buying an existing business without vetting its payment security can leave you liable for inherited vulnerabilities, as in this case where a new deli owner's bank flagged a staggering number of stolen customer credit cards within three months of purchase.
- The new owner had not checked the previous owner's payment card security practices before buying the business.
- The acquiring bank detected the suspicious card activity and alerted the merchant to the breach.
- Due diligence before an acquisition should cover security infrastructure, not just financials and operations.
Quick Answer: What Security Risk Comes With Buying an Existing Business
Buying an existing business can mean inheriting a hidden, ongoing card breach if you don't have a security assessment done before the purchase, as in this SecurityMetrics forensic case.
- A new deli owner learned three months after purchase, via his merchant bank, that customer credit cards had been stolen in large numbers.
- The business appeared financially healthy and reputable, with no outward sign of a security problem.
- The case underscores why a pre-purchase security or PCI assessment is critical when acquiring a business that processes card payments.
One unlucky man inherits a lot of problems
The following post is a segment in my Forensic Files series. I’ve found the best way to inspire better security practices is to show examples of true security blunders. Hopefully the security failures I’ve seen while investigating compromised businesses will help you realize some actions you should take to ensure your own business’ security.
Looking for a good turnkey investment, a man buys a small delicatessen. The deli appeared to always be busy, had a good community reputation, and the financials looked strong. The new owner thought he covered everything before buying the deli, but he overlooked one small important detail. Three months later, the new owner’s merchant bank advised him that his customer’s credit cards were being stolen, and the number of stolen credit cards was staggering.
View the Slideshare below.
The Case of the Stockpiled Credit Cards from SecurityMetrics
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