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View Full Version : 'Skimming' At Gas Pump Latest Theft Device


DocDon
03-21-2004, 11:11 PM
Keys Easily Obtained From Internet, Special Agent Says

March 16, 2004

You could be the target of a thief the next time you pay for gas at the pump. A little device could "skim" your credit or debit card number.

In a videotape, a man is seen pulling up to a gasoline pump and, in seconds, unlocking a panel.

The man is not a criminal, but a law enforcement agent showing just how easy it is for thieves to open up pumps and steal your money.

"The way it's carried out. The way people are victimized and the hope of trying to catch somebody, it's almost the perfect crime," said Bill Miles, a special agent.

It's called skimming, and it's a scam that targets anyone who uses debit or credit cards to pay at the pump.

How does it work? When customers swipe their cards at the pump, a skimming device, installed by thieves just behind the panel, records all the information from the card's magnetic strip.

It records your name, address, account number. There is no way to tell if a pump's been tampered with.

"That's one of the terrible things about this crime: you have no idea," said Miles.

"It's Russian roulette. Is it this pump? Is it that pump? Is this the station?" said Miles.

Miles believes thieves target busy gas stations with plenty of pumps where they can swipe hundreds of cards in no time.

They use that information to make counterfeit cards for purchases and ATM withdrawals.

Just how quickly can someone install a skimming device?

"I think it can be installed, probably in under 15 seconds," said Miles.

It's easy if you have a manufacturer's key that unlocks most gas pumps across the country.

They're not difficult to come by and you can get them from the Internet.

Melody Shimmell is spearheading a crusade to educate customers about the scam. A banking employee, it's cost her regional bank almost $10,000 in just two months' time.

"The whole country is plastic-driven because of convenience. That makes us all very vulnerable," said Shimmell.

To avoid the possibility of being "skimmed," use cash at the pump. Most people, however, are reluctant to give up using credit cards.

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My comment:

How about just walking inside and swiping the card at the terminal on the counter? No need to give up using credit cards.

erik
04-14-2004, 04:48 PM
That's another vote for paying inside.

Also, if you use a credit card you have more protections under the law. With Visa you have zero liability assuming you notice any fraudulent charges in a reasonable period of time.

This applies to real credit cards with a Visa logo that are US based and are not business credit cards or debit cards.
http://www.usa.visa.com/personal/secure_with_visa/zero_liability.html?it=h2_/index.html

DocDon
04-14-2004, 10:07 PM
This applies to real credit cards with a Visa logo that are US based and are not business credit cards or debit cards.
http://www.usa.visa.com/personal/secure_with_visa/zero_liability.html?it=h2_/index.html

It applies to Visa / MC logo'd debit cards as well. Debit cards are processed just like a credit card transaction if it is ran as 'credit'.

erik
04-15-2004, 10:14 AM
Well yes in that the Visa Liability policy applies. Unfortunately the legal protections for Debit cards are really really lousy. Debit cards are covered under Regulation E ( http://www.bankersonline.com/regs/205/205.html ) or the "Electronic Funds Transfer Act. Credit cards are covered under Regulation Z ( http://www.bankersonline.com/regs/226/226.html ). With credit cards you would be liable for a maximum of $50. The Visa zero liability just eliminates the $50.

With debit cards the maximum liability is unlimited. If you catch the error and report it within 60 days the maximum liability is $500. What is the date of the error? I guess it's the date of your bank statement. Everyone reads their bank statements right? Then they file them in their filing cabinets right? So if the Visa zero liability is to work in this situation with a debit card, you need to convince Visa to get the merchant that has your cash to refund it immediately to your bank. Yuck! :twisted:

To make a long story short. If you got to use a card at the pump, DON'T USE A PIECE OF TRASH FAKE VISA BANK DEBIT CARD. Use a real credit card. Or pay inside with cash. :P If you have a problem, have your credit card company do a charge back and if, in the end, you get stuck for $50, call Visa and remind them of their zero liability policy. :wink:

ghacorp
05-05-2004, 04:12 PM
It's very safe to use Visa debit cards at gas pumps if transacted as a non-pin (signature) transaction. Some merchants however may require a pin be used and processed as a debit transaction due to lower costs. The clock starts ticking 60 days from the statement date for fraud claims, etc.

DocDon
05-05-2004, 05:25 PM
It's very safe to use Visa debit cards at gas pumps if transacted as a non-pin (signature) transaction. Some merchants however may require a pin be used and processed as a debit transaction due to lower costs. The clock starts ticking 60 days from the statement date for fraud claims, etc.

You're right. If they know about the pin pad. A debit can be run without one, but the merchant is charged the interchange rate as if it were processed as a credit card it still comes out of your checking account, however.

Visa/MC regulations state a logo'd debit card swiped as a credit transaction must be honored - it's not checked against your checking account balance. This often times leads to a negative balance which is why some banks (Fifth Third for example) charges $6 a day for every day your account is in arrears.

Also, most processors won't tell their merchants about pin pads because it's the difference of paying a 58 cent flat fee for a pinned debit, or up to 2% of the total transaction swiped as credit.