Don’t let fraud spoil the menu: How restaurants can stay secure this season

As the summer tourism season approaches and major sports events like the NHL Playoffs bring more Canadians to local restaurants, hotels and entertainment venues, businesses across the country are preparing for a busy stretch. The increased foot traffic is a welcome boost, but it also presents new challenges, especially when it comes to preventing fraud.

To meet demand, many businesses will be hiring seasonal staff and onboarding quickly. This flurry of activity can create gaps in oversight and make it easier for fraudsters to slip through the cracks. Now is the time for business owners to make sure their teams are well-trained, internal processes are secure, and red flags don’t go unnoticed. 

Here are some ways to prepare your team and reduce fraud risk:

Always follow secure payment practices

The most common type of fraud across all industries is mail order/telephone order, or MOTO fraud, making up 32 per cent of cases in the hospitality industry. This happens when a merchant takes card details over the phone or by mail and manually enters it. When a cardholder disputes a charge completed by MOTO, the business is left with the loss.

While taking card details down by hand may sometimes feel like the easiest thing to do when busy with orders, it opens your business up to risk and it’s just not worth it. Instead, use a secure online payment gateway as these often integrate with a variety of fraud prevention tools, or accept payment from the customer in person during pickup on a secure payment device. 

Apply passwords to terminals

While cases of employee led refund fraud in Canada have increased, the practice is still relatively uncommon, making up 10% of reported cases. It is a challenge that Canadian businesses can easily mitigate by ensuring their staff are appropriately trained to follow secure payment practices.

This includes applying passwords to terminals that only authorized employees know and limit access to refunds with administrative restrictions. These should be readily available on your payment acceptance device. You can also implement dual-authorization processes for large transactions, like big parties, and monitor financial records for irregularities closely.

Help combat fraud

Fraud not only affects the bottom line but also erodes trust between restaurants and their patrons. Fraudsters are becoming more sophisticated, just because your business hasn’t been targeted by fraud yet doesn’t mean it’s immune.

Remember, reporting fraud isn’t just a duty – it’s a powerful tool in the fight against crime. Even minor reports can lead law enforcement to dismantle larger fraud networks. Make sure your employees know to flag any cases of fraud. If you’ve been a victim of fraud, notify the authorities and your commerce provider, as they can provide support to help you mitigate losses and get your operations back on track.

By staying informed and taking proactive steps, you can safeguard your business today while building a more secure future. 

Maria Cameron is the Director of Risk Management at Moneris, Canada’s leading commerce provider. Maria leads Moneris’ strategy for detecting, measuring and managing fraud risks. With years of experience in fraud detection and prevention, she is well-versed in the latest fraud schemes affecting businesses and will share valuable insights on how companies can protect themselves against these rising threats.