Do Not Use Your Debit Card at a Gas Station
Don’t be fooled.
Card skimming, in which an illegal reader is connected to a payment terminal, is a widespread financial scam, especially at a gas station. According to the National Association of Convenience Stores , a single hacked pump at a gas station can hack between 30 and 100 cards every day in the United States.
“These card readers collect data from the magnetic stripe of a credit or debit card without your knowledge,” warns the FTC . “Criminals are selling stolen data or using it to buy things on the Internet. You will not find out that your information has been stolen until you receive a statement or notice of overdraft. “
This is a common problem that grows every year , but can be easily avoided with a few extra precautions.
Don’t pay for the pump
One way, as noted by Security’s Krebs , is to go to the cashier to pay with a debit or credit card, but especially a debit card. In fact, it’s best not to use a debit card at all if you can help.
“Some pump skimming devices are also capable of stealing debit card PINs, so it is recommended that you avoid paying with a pump debit card ,” writes Krebs (emphasis added). “Armed with your PIN and debit card details, thieves can clone your card and withdraw money from your ATM account.”
This is generally one of the reasons security and fraud experts recommend paying with a credit card instead of a debit card: if you use a credit card, you don’t actually spend your money, and you are protected by your issuer’s zero liability policy. … When your debit card transactions are approved, money is immediately withdrawn from your account. If a scammer has withdrawn funds, you will have to wait for their recovery and refund, which can take days or weeks. Credit cards can also potentially earn you gas rewards , depending on which one you use.
And don’t forget to set up fraud alerts for both debit and credit accounts.
Pay with your digital wallet
Krebs also notes that some of the new pumps may include more mobile payment options, such as Apple Pay, Samsung Pay, or Android Pay, that don’t require the customer to provide credit or debit information to the station at all. If you use a mobile payment service that runs at a gas station that you use frequently, choose that payment method instead of your card, or use a payment app (which may also come with some rewards ). In general, new pumps will be safer for payments than old ones.
Some stations give customers a discount when paying with a debit card rather than a credit card because it is cheaper for them, writes Krebs. In this case, look for another station.
“It may not be a good idea to frequent a particular gas station simply because it offers the lowest prices: it could lead to hidden costs down the road,” he writes.