A New Kind of Pain at the Pump: Credit Card Fraud

I am by nature a very routine person.

Today, I left for work. As soon as I got in the car, I remembered that I was down to a quarter tank and needed to fill my tank up. So I made the trip over to my favorite gas station at the local village center. I've been going to this gas station for years because it's easy to get into--not like the other gas station closer to my house where you need to squeeze past parked trucks and perform some complicated driving maneuvers to get into an open space at the pump. At my favorite station, I drove right up to the same pump I always go to and then swiped my credit card into the machine.

And that's how I became a victim of credit card fraud.

As I was driving to work, my husband received an automated phone call from the bank saying that my credit card account had been flagged for fraudulent purchases. He sent me an e-mail asking me to go online and check my account, saying that there was a problem with it. When I went online, I had trouble getting into the account to check it, so I wrote down the number and called the bank.

I was asked if I made any Internet purchases that morning, and I said no. I was asked if I'd used the card, and I was prompted to recalled the gas purchase on the way to work. I was told that several small purchases were made on the card to test it, and then Internet purchases were made. The fraud was detected and the card was shut down within an hour of the purchase. I'll receive paperwork to erase the fraudulent purchases, and I hope it will not be too much of a hassle to rectify this.

I couldn't believe that the gas station had stolen my credit card information. I've been going to this gas station for years, and I plan to take this up with the gas station manager tomorrow.

Card Skimming
Out of curiosity, I did a search on Google and found out that what happened to me is part of a growing problem. The majority of credit card fraud occurs at gas stations (61.6%) and drug stores (14.3%), according to a Google summary of a Science Direct pay-per-view article.

At gas stations, thieves can install small skimming devices at the gas pump that are hard to detect which steal credit card and debit card data, According to an article in USA Today. The skimmed credit card data is then used to create duplicate credit cards that are used at the victim's expense. The theives will "test" the card with several small charges, and if the account holder doesn't shut off the card, much larger purchases are made, according to David Loshin's blog. Banks and credit card companies use algorithms to flag cards with suspicious purchases and card activity.

Some police departments are trying to place sticker seals on the pumps that gas station employees check daily...that's if the gas station employees aren't the cause of the problem. Other gas stations now require customers to enter their ZIP code, according to a story in The Boston Globe, because a thief is not likely to know the ZIP code for the card. This may be an especially effective deterrent in suburban locations where there are several ZIP codes in close proximity. I recall being asked to enter my ZIP code at another local gas station, but not this one.