Navigating the Security Minefield: The Pitfalls of Processing Credit Card Payments via Cell Phone Networks

Inflation and other economic issues have forced everyone, small businesses included, to take a step back and examine how to save money. One common way we’ve noticed small businesses try to cut back on expenses is with cell phone networks to process credit card transactions. There are new tools for small businesses, such as Square, that allow someone to process a customer credit card or debit card utilizing their cell phone. The convenience and ease of use makes sense for business owners to save money on other transaction tools. “Nevertheless, we’ve observed a rising trend in the utilization of these tools with the employer’s cellular network, rather than through Wi-Fi supported by fiber or another, more secure alternative to the cellular network.”. This is a security risk to customer data and may end up costing a business more money in the long run, especially in a time where cyberattacks are so common.  

According to Statista, 422.14 million records were exposed in 2022 – surpassing the entire population of the United States. A staggering 47% of small businesses fell victim to cyberattacks in the same year, shedding light on the vulnerabilities small businesses face when it comes to cyber security. With 82% of point-of-sale transactions now taking place on customer cards, it’s imperative for businesses of all sizes to protect themselves and their customers from getting their data stolen. Below we’ve listed some of the risks businesses face by using cell phone networks to process card transactions and how fiber can help with a business’s transaction security.  

Security Breaches and Customer Data Exposure: 

One of the significant headaches local businesses face when utilizing cell phone networks for credit card transactions is the heightened susceptibility to security breaches. Unlike more secure alternatives such as fiber, mobile networks expose customer data to potential threats, with cybercriminals exploiting vulnerabilities to gain unauthorized access. This compromises the integrity of sensitive financial information and erodes customer trust, a cornerstone of any successful business. 

Interception of Wireless Signals: 

Hackers have honed their skills in intercepting wireless signals transmitted between devices and cell towers, posing a serious threat to businesses relying on mobile networks for payment processing. The interception of these signals allows cybercriminals to eavesdrop on confidential transactions, potentially gaining access to credit card details and other sensitive customer information. This form of attack can have severe repercussions for both the business and its customers, leading to financial losses and reputational damage. 

Violation of Industry Regulations: 

The usage of insecure mobile networks for credit card transactions can inadvertently violate industry and data protection regulations. Businesses are entrusted with safeguarding customer information, and failure to adhere to established security standards can result in legal consequences. Being non-compliant to these regulations exposes businesses to regulatory fines and even lawsuits – potentially costing more than the original investments to keep customer data secure. 

Transaction Failures Due to Signal Dropouts: 

Another notable headache stemming from the reliance on cell phone networks is the potential for transaction failures or incomplete processing due to signal dropouts. Mobile networks are susceptible to fluctuations in connectivity, and during peak usage times or in areas with weak signal strength, businesses may encounter challenges in completing transactions. This not only frustrates customers but can also lead to financial losses and a tarnished business reputation. 

How Investing in Fiber Internet Can Help 

While we are not a cybersecurity company, KWIKOM does provide fast and reliable fiber internet and fixed wireless internet throughout Kansas. Both solutions offer robust security features that make it significantly harder for cyber criminals to hack into the information and compromise sensitive information. Fiber and fixed wireless technologies utilize advanced encryption protocols and dedicated security measures. By switching to KWIKOM’s internet solutions, you can have peace of mind knowing your business and customer data is protected against cyber threats, ensuring trust and confidence in your valued customers. Click here to reach out to us today for a free quote on our business internet solutions.