I’ve heard that I shouldn’t use my credit card to pay for gas at the pump because my financial information can be stolen. Is that right?
Identity thieves have developed several new ways to steal sensitive personal and financial information. At least one of these methods involves intercepting information from gas station pay pumps.
Every time someone swipes a credit card or debit card at a gas pump, the financial information is automatically sent to that person’s bank in order to verify the information. According to credit reporting agencies, identity thieves have invented a way to intercept the information being sent from the gas pump to the customer’s bank. Specifically, the thieves modify the computer program so that the information is sent to them at the same moment that it is sent to the customer’s bank. Unfortunately, there is no sure way for the customer to know whether sensitive financial data is being stolen.
This does not, however, mean that a consumer is helpless as there are several things that can be done to protect against fraud at the gas pumps. The easiest way is to pay for the gas in cash. However, paying in cash may not be the most practical option due to the recent increase in gas prices. Another option is to pay inside the store, which usually does not verify financial information via satellite.
If you are intent on paying at the gas pump, be sure to use a credit card and not a debit or check card. It is usually more difficult to challenge improper or fraudulent charges to check or debit cards, which can be compounded by the fact that sometimes there is a delay for fraudulent purchases to be credited back to a consumer’s checking account. Alternatively, credit-card companies should remove any disputed charges from your account.
This article appears in September 9 • 2005.