Paying at the pump just got more risky

The skimmers are designed to slip over the real card reader. They can be hard to spot. And quite frankly, most of us would never look for something like this anyway. We want to pay and go.

So how do they get your PIN number? They can hide a little camera in the skimmer or on the pump. It shows your fingers as you type in the number.

There are also fake keypads that slip over the real keypad that can transmit the PIN code as you enter it.

In Las Vegas, police have discovered even more sophisticated technology – wireless transmitters installed inside the pump. “They can actually sit in the parking lot with a laptop and get real-time information as victims use their card,” explains Lt. Robert Sebby of the Las Vegas Metropolitan Police Department. Because there’s nothing on the outside of the pump, there’s no way you can tell the pump is compromised.

Not a safe way to pay
Nancy and Jim Tew no longer use their debit cards to pay at the pump — and for good reason. They both had their debit card numbers stolen at one of those gas stations in Puyallup, Wash.

Nancy Tew found out about the theft when her card was rejected at the grocery store. “To my astonishment, I had no money in the bank,” she said.

The thieves used her account number at ATMs in Hollywood, Calif., to steal $600. They got $900 from her husband’s checking account. She tells me it was “totally bizarre and really scary” to be targeted like that and not even know it.

Protect yourself at the pump — Go in the store to process transactions. — Check your statement as soon as it arrives or online. Report inconsistencies quickly. If you don't report a fraudulent transaction fast enough, you might not be able to get your money back. — If you do suspect skimming, call law enforcement immediately. Source: Creditcard.com

The Tews now pay for their gas — with cash or debit card — at the register. That may sound paranoid, but other victims of this skimming attack tell me they now do the same thing.

Police in Puyallup and Las Vegas now 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.

That’s smart advice and here’s why. Debit cards do not offer the same fraud protection as credit cards. If 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. 

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