Crooks are stealing bank credit card information at gas pumps

Brien Krebs, in KrebsonSecurity reports on July 20, 2010, credit thieves are now attaching bank card skimmers inside gas pumps. The small circuit boards, apparently include both memory that stores the bank card data and a Bluetooth wireless transmitter that later passes customer's bank card data to an accomplice. The thief can just innocently park within Bluetooth range of the infected pump and use a laptop or smartphone to download the stolen card info. For more details see: "Skimmers Siphoning Card Data at the Pump"

For the past several months, using a credit card or debit card to pump gas in the Southeastern U.S., especially along I-75 or I-95 in Florida and Georgia proved even more expensive for a number of travelers and local residents. Similar credit card skimmers have been found in gas pumps along I-25 near Denver, Colorado. Police have also reported skimmed credit card numbers in Arizona, California, Nevada and Washington, and pay-at-the pump gas can cost you a lot more than you expect.

So far, there's not much you can do until you "Discover" (pun intended) that your card has been used for unauthorized purchases. One Florida gang was using the stolen card numbers to buy expensive gift cards in several Miami Walmarts. If skimmers get your pin number and your debit card number, they can empty your account while you're still on vacation. Alachua County Deputy Sheriff, Lt. Stephen Maynard, suggested to The Gainesville Sun that consumers take their credit cards or debit cards inside to the cashier or consider paying with cash.

Debit cards are the greater risk. Herb Weisbaum writes in an MSNBC "ConsumerMan" report that police in Las Vegas and Washington state, "advise residents not to use their debit card at a gas pump because there’s no way to be sure it hasn’t been tampered with." Weisbaum's article continues:

• Debit cards do not offer the same fraud protection as credit cards. If a crook armed with a skimmer snags your credit card number and uses it to buy things, you can dispute the charges with the credit card company. You won’t owe a thing while they investigate.
• If the crook grabs your debit card number, he can go to a cash machine and pull money out of your checking account. It could take days for the bank to investigate and put that money back into your account. During that time checks could bounce or you might not be able to pay your bills. That’s why the only way I pay at the pump is with a credit card.
• Another safe way to pay is with a gas station charge card. If you must use a debit card, choose the "credit" option. Your debit card doesn't become a credit card; it just means you don't have to punch in a PIN code. That's why it's actually safer. If the thieves get your card number, they won't have your PIN so they can't use it at a cash machine. 

So travelers may not know that gas pump skimmers are in the area and debit card users are particularly at risk. OK, then what can average consumers do to protect themselves? Common sense safeguards include:

1. Go in the store to process transactions and sign all credit card receipts, slower but effective, and you get to stretch your legs a little on a trip.
2. Check all credit card and debit card statements as soon as they arrive for any unauthorized purchases.
3. Put a security code in place on all credit cards so only the owner can use them.
4. Notify your local law enforcement officials AND your bank as soon as suspect you may have been victimized by this type of scam.
5. Immediately cancel any compromised accounts. There are differing protections and time limits depending on the type of cards you use.  Bank debit cards normally carry fewer protections than credit cards, so don't delay!
6. Check credit reports for any negative information that might have occurred from the incident.

Deputy Maynard also told The Gainesville Sun that he plans to stop using his debit card for purchases and said, "Cash is king."