In the scenario where customers use magnetic stripe payment cards and are paying via EPOS, a merchant can put a fake EPOS on the table that looks identical to real ones, the customer uses his card on this device and enters his pin.
This device records card information and the pin entered and says that it failed to connect to the bank or the payment gateway.
Then the merchant tells the client to use another EPOS which is genuine and the payment succeeds. It's like phishing but in real world with physical devices.
In this scenario there's no way for the customer to authenticate this EPOS device and make sure that it's the real device and connected to bank network.
Are there any methods currently being used to mitigate this risk? What are some countermeasures to put in place, not to fall for this attack?
(reminder) these devices are tamper resistant meaning you can't open them up and manipulate the circuitry but the scenario above, uses a totally fake device that just looks like real EPOS devices.