Card Skimming Fraud Costs More Than $1 Billion At The Gas Pump Each Year |
Thinking about taking a road trip this summer? It’s not just gas prices that you need to keep an eye on: gas pump card skimmers can also take a bite out of your finances. According to the Federal Bureau of Investigation (FBI), card skimming costs financial institutions and consumers more than $1 billion each year.
What Is a Gas Pump Card Skimmer and How Does It Work?
A gas pump card skimmer is a hidden device that steals payment card data when you pay for your gas. It may be attached over the card reader, hidden behind the pump face, wired into the pump’s internal electronics, or paired with a tiny camera or keypad overlay to capture your personal identification number, or PIN.
It may not always be easy to spot. Gas pump skimmers may be attached to internal wiring and not visible from the outside. Another option is that a skimmer may sit inside the pump and store card data for later pickup or wireless transmission. That’s one reason swiping can be riskier than using a chip, tap-to-pay, or a mobile wallet.
It usually takes only a few seconds to install external skimmers, while internal devices may require more time and access to the pump cabinet.
In one case, thieves in Utah installed Bluetooth-enabled card skimming equipment on the motherboards at the pumps, and then returned within Bluetooth range to download card data, including credit card numbers, names, and zip codes. They were then able to use the data to create duplicate cloned cards encoded with the same data as the customers’ authentic credit or debit cards. After making the cloned cards, the thieves tested them with small transactions—typically $1—to identify which debit and credit cards could be used for larger purchases and cash withdrawals. Six defendants were ultimately found guilty and sentenced for their........