Long Island Rail credit card system combats fraud
Credit card fraud at ticket machines peaked in May of last year before installation of the new system, which requires customers to provide their zip code as part of the verification process. The rail service expects to save over $5 million.
The New York Metropolitan Transportation Authority's (MTA Long Island Rail Road (LIRR) expects to save more than $5 million this year as a result of a recently implemented new credit card verification system at its station ticketing machines aimed at combating credit card fraud.
Credit card fraud at LIRR ticket machines peaked in May of last year before installation of the new system, which requires customers to provide their zip code as part of the verification process.
The LIRR and MTA Police worked closely together to address the problem. The LIRR arranged for the development and implementation of the zip code verification software for its ticketing machines. At the same time, the MTA Police stepped up credit card fraud investigations — effecting 35 arrests in 2010 and 2011.
Over the course of several months in the latter part of 2011, the LIRR added a zip code verification system for the credit card purchases made at its 272 ticketing machines systemwide. The verification system requires customers that are making purchases at the machines in enter their zip code, similar to the verification system used at many gas stations throughout Long Island.
In tracking fraudulent charges, the LIRR noticed a significant increase in credit card fraud at the ticketing machines over the last year. In the prior years, credit card fraud represented less than one-half of one percent of total credit card sales. However, in the 2010 and going into 2011, there was a sharp upswing in the fraudulent activity, where credit card fraud climbed to more than 2% of the LIRR’s total credit card sales at the machines.
A pilot program started with the installation of the security verification software at eight machines in May 2011. The program was expanded over the remainder of the year to cover all LIRR ticketing machines.
The cost of the fraudulent purchases reached a high of nearly $545,000 in May 2011.
With over 75% of the ticketing machines equipped with the anti-fraud measure by September 2011, the losses dropped precipitously to just over $90,000 in October. Upon completion of the installations in December 2011, the fraudulent activity plummeted to four hundredths (0.04) of a percent of total credit card sales, or $11,000 in January.
More Rail
New York MTA Leverages Zoning Program to Advance Station Accessibility
Accessibility enhancements at Nevins St Station will be financed through a development agreement tied to the MTA's Zoning for Accessibility initiative.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
DOT: Brightline Corridor Incidents Fall 30% Following Federal Safety Upgrades
Safety improvements funded through a $25 million federal investment are credited with reducing trespassing and train-vehicle collisions along the Brightline Florida corridor.
Read More →
D Line Expansion Fuels Growth Across LA Metro's Rail System
Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.
Read More →
Southern California's Metrolink Debuts Contactless Fare Payment Pilot
Customers traveling between Redlands and Los Angeles can now tap their preferred payment method, including a credit or debit card, mobile wallet, or wearable device, at station validators before boarding and again while exiting.
Read More →
California's BART Approves FY27 Budget While Maintaining Service Levels
The budget covers July 1, 2026, through June 30, 2027, a period when pandemic emergency funds run out, the District faces a structural deficit of $375 million, and a regional transit funding measure may appear on the November ballot.
Read More →
Penn Station Transformation Advances with Design Unveiling
The historic redesign will transform the busiest transit hub in the Western Hemisphere from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors.
Read More →
Second Avenue Subway Phase 2 Advances into Major Construction Stage
New York Governor Kathy Hochul joined leadership from the MTA, elected officials, and Harlem community leaders to break ground on the major construction stage of the transformative Second Avenue Subway Phase 2 project.
Read More →
The Invisible Infrastructure of Passenger Flow
What a seat reservation system on Austria’s Railjet trains reveals about the future of rider experience, and why U.S. agencies should pay attention.
Read More →
Caltrain Board Approves FY27 Budget, Endorses Efficiency Measures
The move ensures Caltrain service will continue operating as usual in the near term, but long-term financial challenges remain for the rail agency absent a new revenue source.
Read More →