Fiscal cash registers employing WORM microSD cards are the foremost security solution to control tax fraud. This Write-Once-Read-only WORM microSD card saves the data permanently and keeps the data unaltered from edit access. The entire sales cash register is made secure using the WORM secure microSD card, which only writes the record once and doesn’t allow tampering with transactions by the host.
What is POS?
Point of Sale (POS) is a system centered on hardware and software which facilitates online or offline retail transactions. Referring to the time and place where a retail transaction occurs, this system allows business organizations to process customer payments. In addition, few systems provide inventory management functionality, among other features, enhancing the system’s potential.
Why are Fiscal laws necessary?
Governments all over the globe enforce fiscal laws to streamline the tax revenue collection system and avoid retailer fraud. Unfortunately, there are numerous ways of executing sales tax manipulation:
In order to evade the sales tax manipulation, fiscal law necessitates businesses to integrate fiscal security solutions and authorizes only the use of approved fiscal cash registers or devices. It also ensures that VAT transactions are reported and paid in full to the authorities. Fiscalization is deeply rooted in the business processes of returns, discounts, voucher handling, etc. Fiscal laws mostly have a country-specific name, and they cover the following aspects:
- Working of the electronic cash register
- Design of retail processes
- Data storage management
- Preventing data and tax manipulation
- Generation of revenue reports for authorities
- Periodic reporting to the authorities
Fiscal laws in different countries:
The advent of fiscal laws dates back to Italy in 1983; more than 40 countries have introduced these laws since then. Different governments are defining different regulations for fiscal laws implementation in their financial landscape:
I: For example, fiscal law in Portugal specifies that VAT-related data from POS must be sent to the authority regularly to carry out operations in the ERP system of retailers.
II: Romania has fiscal law which forces the usage of the fiscal printer at the POS to secure the VAT-related data, which can be read in case of a fiscal audit.
III: The fiscal transaction data in Austria demands each transaction at POS to be signed and contain the signature of the prior transaction, creating a traceable history that allows the detection of missing or altered transactions.
IV: France uses a software-based approach that requires retail businesses to record customer payments using certified secure accounting software or certified POS systems, with all financial and system-related transactions being digitally signed and saved.
V: Fiscal law in the Czech Republic requires certified software at POS capable of transmitting transaction data directly to the financial administration (EET-System).
VI: Germany passed the fiscal law to protect against manipulating essential digital records Kassengesetz, in which every POS must use the government-certified security system (TSE).
VII: In the United States, each state makes its own fiscal laws; such as in California, retail establishments that use point-of-sale (POS) systems must be registered and are routinely tested for pricing accuracy. Users of POS systems in Massachusetts must maintain auditable internal controls to ensure the accuracy and completeness of the transactions recorded in the POS system. This implies that the U.S. has 50 different sets of fiscal policies to supervise sales tax at the POS.
Pitfalls of POS machines:
The fiscal law enforcement community needs to maintain safety and security for storing and preserving sales tax data collected at POS terminals. All POS systems employed in different countries have some level of tax evasion risk attached to them. Retailers utilize sales suppression software, called tax zapper, to modify sales reports generated by the point of sale software to reduce taxable income. As per an audit report by Blomberg Tax, the total tax loss reported in California due to tax zappers amounted to $ 30 million.
Most of the POS software installed at the retailers’ end has loopholes that allow them to morph the sales tax records. For example, underreporting income through electronic sales, sales suppression, and over-reporting deductions through false invoicing are common loopholes used by retailers for tax evasion and fraud. In addition, the software of POS machines controls operations of the cash register. As a result, it can become a source for deletion of sales transactions resulting in the loss of billions of tax revenues.
Flexxon WORM memory cards propose a win-win opportunity for better detection of a tax crime, higher tax revenue recovery, and synergies that can make tax compliance easier for businesses and tax administrations. WORM card extends a flexible non-rewritable storage system to store sales tax data fulfilling the requirements of fiscal laws of various countries without the hassle of additional software. Furthermore, the WORM microSD card removes the vulnerabilities of tax manipulation from POS terminals by eliminating the menace of software use.
FLEXXON BIDS A SOLUTION FOR TAMPER-PROOF FISCAL POS STORAGE: WORM SD CARD!!!
FLEXXON offers hardware-based fiscal flash storage alternative WORM microSD CARD to combat sales tax manipulation at POS terminals.
Fiscal cash registers employing WORM microSD cards are the foremost security solution to control tax fraud. This Write-Once-Read-Many WORM microSD card saves the data permanently and keeps the data unaltered from edit access. The entire sales cash register is made secure using the WORM secure microSD card, which only writes the record once and doesn’t allow tampering with transactions by the host. In addition, the WORM microSD card keeps a log of verifiable tax information at the time of sale. The crucial financial tax record is saved once in the microSD card but can be accessed multiple times per requirement, ensuring the integrity and security of the data.
Significant Features of Flexxon WORM MicroSD Card:
THE WORM microSD card of Flexxon extends tremendous POS and fiscal law features. It is a non-rewritable, non-alterable, non-erasable fiscal data storage sd card preventing inadvertent or deliberate altering of sales tax records. It is a reliable and fortified file storage solution, and its key features include the following benefits for the POS machines’ resilience:
- Plug-and-play device: It does not need any software installation and connects readily to the POS terminals.
- Write-Protect Mode: Prohibits the modification and deletion of sales tax data.
- Tampering Action Notification: Prompts error notification once any tampering endeavor of sales data records is attempted.
High Data Reliability:
WORM microSD card enhances data reliability by supporting the auto-read refresh feature, which avoids read-disturbance errors of the sales tax data, reducing the chance of uncorrectable errors, and thus increasing sales tax data reliability.
Benefits of Flexxon’s WORM microSD card at POS terminals:
The WORM microSD card is compliant with the data integrity and storage requirements of fiscal laws, which makes it an attractive option for the POS solutions manufacturers with the stated benefits:
- Integrated Security: Activates WORM Function Mode and Write Protection Mode by default when connecting to the POS terminals.
- Speedy Access: Facilitates sequential writing for the POS terminals to store multiple files and make them irreversible.
- Monitoring Tool: Utilizes the S.M.A.R.T tool to monitor the health and endurance life of the WORM microSD card.
- Secure data archive: WORM microSD card creates a secure and irreversible data archive for sales tax records at the POS terminals.
- Power loss Protection: Power loss protection in Flexxon WORM microSD card ensures an uninterrupted memory storage solution for POS sales transactions.
- Time and data authentication: Facilitates quick search and retrieval of sales tax records of any POS terminal.
Flexxon’s cutting-edge WORM technology establishes data integrity and reliability for sensitive content storage of fiscal POS terminals. It provides a tamper-proof sales tax data archive with compatibility, security, and cost-effectiveness. In the digital age, POS systems’ users execute tax manipulation with software or hardware vulnerabilities. The WORM microSD card combats these tax evasion attempts and acts as a fiscal soldier for the government.