Gas Pump Credit Card Skimmers Under Pressure from New Michigan Bill

If you drive a car in Michigan, you’ve probably used a gas station’s “pay-at-the-pump” machines. You know how convenient it is to pump and pay without the trouble of heading inside. But that same convenience makes it easy for scammers to use credit card skimmers to steal your identity. A new bill hopes to stop that.

Since August 2015, the Michigan officials have found 68 credit card skimmers on gas pumps across the state. The Michigan Department of Agriculture’s task force found identity theft devices slipped inside pay-at-the-pump gas stations from Detroit to Benton Harbor.

Skimmers copy a customer’s credit or debit card information while they are making an authorized transaction. Thieves can then use that information online to make fraudulent purchases.

Gas pumps are particularly appealing targets for scammers. Their locks are often accessible with basic skeleton keys, giving thieves access to the electronic credit card readers. Skimming devices can be installed in seconds and are not visible outside the pump. If an attendant doesn’t have an eye on the pumps at all times, it can be easy for a thief to sneak in and install the skimmer without anyone knowing.

Now the Michigan legislature is calling on gas station owners to do more to protect their consumers’ identities. House Bill 5797 was introduced on August 3, 2016 by Representative Ben Glardon of Owosso. It would require gas stations to install tamper-evident security tape or encrypted card readers (using chip card technology) on all of their gas pumps by 2017. Gas station owners who ignore the proposed law will get a warning and 5 days to correct the problem. If they refuse, the state could shut them down for non-compliance.

Some are saying that the cost of chip readers is too big a burden for gas station owners to bear. The law would shift some of the responsibility for identity theft from credit card companies to retailers. In support of his argument, Michigan Petroleum Association President Mark Griffin pointed to the cost for replacing gas pumps. However, Griffin’s objection ignores less expensive alternatives available to retailers like retrofitting existing dispensers with new chip readers, or simply installing the pressure-sensitive tape.

Identity theft affected about 7% of American adults in 2014. The total cost to consumers that year was over $15 billion dollars. While skimmers are only one tool thieves use to steal consumers’ identities, they are one of the easiest, and most frequently used.

By requiring gas stations to do their part in the fight against identity theft, the Michigan legislature can make sure the state’s residents are safe. But if they allow the minimal expense to put them off, it could cost consumers a whole lot more.

Dani K. Liblang is a consumer protection attorney at The Liblang Law Firm, P.C., in Birmingham, Michigan. If you are the victim of identity theft, contact The Liblang Law Firm, P.C., for a free consultation.