Skimmer Scams Continue in California

Customers across the state are reporting unauthorized debit-card transactions linked to gasoline station skimmer fraud.

February 07, 2011

SANTA BARBARA, Calif. - Debit-card skimming has become prevalent in many areas of California, Noozhawk.com reports. Increasingly, unauthorized card readers have been placed inside gasoline pumps by thieves.

The skimmers are attached inside the pump or over the card reader to transmit credit or debit card data and personal ID numbers via Bluetooth or other technology, said Santa Barbara Police Lieutenant Paul McCaffrey. Thieves use the information to siphon funds from bank accounts or make purchases.

Los Angeles police identified at least 380 fraud victims linked to a gasoline station in Sierra Madre, who lost more than $109,000 collectively since December 2010. On the East Coast, skimming scams have been run since 2008. Security experts warn that more skimming scams are likely this year.

Debit card use has soared, jumping from 47.7 percent in 2003 to 58.9 percent in 2008, according to the Nilson Report. To maximize protection at the pump, police advise customers to select the credit card option when paying with a debit card.

"For every device we create to prevent fraud, criminals are two steps ahead of us, and it€™s getting worse because of the economy," said Dan Oriskovich, vice president and senior relationship manager for Chase Bank. "Many times when they do obtain the information, they package the information and sell it overseas or domestically."

NACS has a fact sheet on skimming with tips on how gasoline stations can protect themselves from that type of fraud.

Find out more about PCI compliance and how NACS products €" EZ PCI and TurboPCI €" can help you navigate the complicated process of becoming compliant.

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