Friday, August 11, 2017

Scam Uses Stolen Credit Card Data to Illegally Resell Gasoline

Improvements in technology are great in many ways. They save money, make life more convenient, and help people to do good in the world. However, technological advancement can often have drawbacks as well. One of the main issues in recent years is the average criminal's increasing ability to get away with financial crimes. The more technologically advanced something is, the more opportunities there are for criminals to hack in or scam people. According to an article by the Associated Press of the Los Angeles Times, one of the latest scams involves using stolen credit card information to resell gasoline on the black market.

The first part of the scam involves attaching 3D-printed credit card "skimmers" to ATMs or other credit card readers, such as those at gas stations. When someone swipes their card through the skimmer without realizing that it's not actually part of the machine, it records the credit card's data for the scammer's use. Then, the scammer is able to transfer the information to a fake card later, which they can use to make purchases. As devices get more advanced and criminals become more tech-savvy, the crimes continue to increase.

Once they have the counterfeit cards with someone else's data on it, the thieves go to gas stations with specially-designed trucks with hidden fuel tanks that can hundreds of gallons of gasoline. Then, they go off and empty the fuel from the trucks into 4,500-gallon industrial tankers. Finally, the tankers turn around and sell the gasoline back to the gas stations or to people on construction sites or to truckers looking to get a discount. Even the smallest gangs of criminals can steal thousands of dollars per day in gasoline, which can be more profitable with fewer risks than other money-making scams.

These types of crimes started sometime around 2006 when the skimmer technology was first developed. Since then, thieves have been using the strategy more and more, mainly in populous states with many busy interstates, such as California, Florida, and Texas. At first, law enforcement did little to combat these crimes, since they were only targeting a couple hundred dollars per transaction. It was seen as a "victimless crime," because the targets could dispute the charges on their credit card statements and generally get the money back. Because of the "slap-on-the-wrist" view of this type of crime, more and more thieves joined up, to the extent that some gangs are making up to $20 million per year off of stolen gasoline.

Because this is a financial crime, the US Secret Service is  involved and is investigating various gangs of criminals, shutting down these groups when they can, and are working on instituting tougher laws to dissuade other criminals from going after the "low-hanging fruit." Gas stations are also looking into installing devices on their pumps that shut the machine down if it is tampered with. Generally, everyone should just be on alert and do what they can to avoid being targeted by a similar scam. Be careful when using your credit card somewhere you don't trust, and if something looks suspicious, you should report it to the authorities.

Find out more about us at Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.

No comments:

Post a Comment