Rail

Long Island Rail credit card system combats fraud

Posted on March 6, 2012

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.

View comments or post a comment on this story. (0 Comments)

More News

D.C. Metro to introduce new 7000-Series railcars in April

The introduction of the first new train will be the most significant milestone to date for a project that has spanned nearly five years from approval and funding, through design and engineering, to testing and certification.

Alstom secures power supply contract for Kochi metro in India

This contract includes high voltage cabling from the state grid for the new 16-mile metro line. Alstom is the main supplier of Kochi metro after it has been awarded previous orders for 25 Metropolis trainsets, signalling, telecom and electrification. Commercial service is scheduled to begin in March 2016.

Bombardier signs maintenance contract for National Express Essex system

The contract, which is for a ten-year period with the option to extend another 5 years, covers maintenance and spare parts on 74 four-car Class 357 ELECTROSTAR trains and is valued at approximately $213 million.

MBTA gets winter weather advice from 'peer' cities

Suggestions included using special diesel-powered vehicles to clear snow from tracks, as well as using deicing chemicals to prevent the third rail from freezing and losing contact with the trains.

Chicago Transit replacing airport escalator damaged in train wreck

The train wreck, which occurred in the early morning of March 24, 2014, when the operator allegedly fell asleep, injured more than 30 people and caused roughly $9 million in damage. The lead railcar had to be cut up to remove it from the escalator.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The resource for managers of class 1-7 truck Fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close