Stolen at the pump: an empirical analysis of risk factors on gas pump skimmer fraud attacks

Abstract

Purpose The purpose of this study is to examine the characteristics of gas stations where skimmer attacks occurred in a sample of Texas gas stations between 2019 and 2021. This paper seeks to contribute to the literature related to payment card fraud at the gas pump by providing one of the first examinations of the gas stations where gas pump skimming is known to have occurred. Design/methodology/approach Using data collected from a Texas state regulatory agency between 2021, the authors examine characteristics of gas stations where a gas pump skimming was detected. Findings Results suggest that the presence of a surveillance camera system was significantly related to gas pump skimmer detection for gas stations in both urban and rural areas. Europay chip readers were not present in any of the pumps where a skimmer attack was detected. Originality/value Gas pump skimming is a form of payment card fraud that costs upwards of US$11bn a year in the USA alone. Gas pump skimming occurs when electronic devices are illegally installed fuel pumps to capture data or record cardholders’ personal identification numbers. This is among the first studies to use data obtained from a state agency with specific information regarding each individual occurrence of gas pump skimming. As such, the paper makes a unique contribution by exploring specific characteristics of gas stations where skimming and ultimately payment card fraud, occurred.