Pay-at-the-Pump Skimming on the Rise

Security tape on gas pump card reader

Security experts are warning of a rise in skimming attacks at gas stations. Millions of
African-Americans use self-service gas pumps everyday and could be vulnerable to skimming attacks.

Skimming attacks are expected to rise significantly between now and the end of 2016 because of the change to the new EMV or PIN and Chip cards. Criminals are targeting self-service terminals at gas stations and ATMs because they are not yet using the new card technology.

Financial fraud expert Avivah Litan said, “Unattended, and especially older, self-service gas pumps are, and have always been, a very attractive target for criminals. And they will become increasingly attractive, as these will be some of the last payment acceptance devices to be upgraded to EMV in the U.S.”

Although the EMV fraud liability shifted for physical point-of-sale devices in the U.S. this past October, the liability shift for self-service gas pumps does will not be implemented until October of 2016 for MasterCard and October 2017 for Visa. October 2017 is also the date set by both card brands for EMV fraud liability shifts at U.S. ATMs.

Experts have been expecting a shift in card fraud as a result of the new EMV cards. They are warning consumers and retailers that gas stations and convenience stores should at least require customers to use their zip codes to authorize payments. This practice dramatically reduces card fraud.

Security executives are warning retailers to step up physical security at the pumps to reduce the opportunity for criminals to install skimmers.   “To place the device on the pump, the fraudster needs access to inside the pump door, so from my perspective, better physical security is needed,” the executive says. “From some of the devices we have seen placed, they are on the pumps for several days, if not a few weeks; and in cases of Bluetooth or Wi-Fi enablement, to download the data, the devices may be left on longer, as to not risk capture or removal.”

To avoid gas pump skimmer follow these steps;

• Examine the card slot closely. Wiggle or tug on the slot to make sure it is secure.
• Check security seal on the card slot.
• Look for signs of tampering such as broken lock on the cover.
• Use cash whenever possible.
• Use a credit card rather than a debit card.
• If you must use a debit card select the option on the screen that allows you to have your debit card purchase processed as a credit card transaction.  Don’t use your PIN  which is what the bad guys need to withdraw cash from your account at an ATM.
• As always monitor you bank account and card transactions closely.

Now you know.