There is a near constant flow of breaking news about cyber crime and data breaches, but one Florida man managed to scam nearly $300,000 from Apple (NASDAQ:AAPL) and other retail stores in a decidedly low-tech way.
According to a complaint filed with a federal court in Florida, Laverne Parrish Jr. was arrested July 17 and has been detained pending trial. Parrish, 24, successfully overrode payment terminals 42 times in 16 different states and stole more than $300,000 from Apple stores, $7,753 in one transaction.
For each purchase, he presented a faulty credit card. When it was declined, the man offered to call the credit card company and then present the employee with an override code. The code was bogus too, but the perpetrator was privy to the fact that any four digit combination would work. And it did.
This isn't the first time the tactic has been used, according to Forbes. Earlier this year the U.S. Attorney's Office in New Jersey stated: "It does not actually matter what code the merchant types into the terminal. Any combination of digits will override the denial. So long as the customer provides a fake authorization code and convinces the merchant to enter it into the terminal, the transaction will go through."
Retailers take note, because the bank initially declined the transactions and the override code is entered by hand at the point of sale, the retailer is liable for any fake charges.
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