Consumer warning suggests alternate payment types when paying at the pump

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GAINESVILLE, Fla. -- Consumer Reports is warning that debit-card skimming is on the rise at gas pumps and ATMs, and suggesting consumers use debit cards like credit cards or pay cash at the pump.

In a report title "Warning: Summer upswing in gas-pump and ATM 'skimmers,' " the publication reported, "In recent months, banks have reported a sharp rise in this type of crime, especially at gas pumps, where some crooks are using Bluetooth devices to make their job even easier. They can simply park near a station where they've tampered with a pump and then download the stolen data onto a laptop."

Skimmers are devices that thieves install on ATMs and gas pumps to steal the account data stored on the magnetic stripe of credit or debit cards.

Why the surge in skimming? Avivah Litan, a senior analyst at Gartner Research specializing in fraud detection and prevention, told Consumer Reports that organized criminal gangs from Eastern Europe have been coming to the United States to set up skimming operations, and their primary target is the data stored on the magnetic stripe of consumers' debit or ATM card.

"Organized criminals have discovered how easy it is," Litan told the publication. "Collecting PINs and ATM card data is as good as getting cash. It's much easier and more lucrative than stealing credit-card data and then selling it on the black market."

The Consumer Reports alert lists recent skimming incidents in Arizona, Florida and Utah. And about 30% of respondents to a CSP Daily News Poll reported their stores have been the victim of skimming.

In one incident reported this past week, AM850 Radio in Gainesville, Fla., reported that gas station owners and managers are taking precautions to stop the skimmers from stealing from gas station customers.

"The Kangaroo store on Southwest 13th Street placed tape on its pumps last week, and, if they're tampered with, the word 'void' will appear on the pump," according to the report.

A spokeswoman for the Gainesville Police Department said the best way for customers to protect themselves is to pay inside at the register.

Since July, a dozen credit-card skimming devices have been found in Alachua County, Fla., according to the report.

Consumer Reports summarized, "The bottom line is that if you must use a debit card at the gas pump, select the option that pops up on the screen to have your purchase processed as a credit-card transaction rather than typing in your PIN. And of course, you can avoid risk altogether if you pay with cash when you fill up."