Card skimming is becoming a big problem for truckers. As reported by Transport Topics, many people have had to deal with credit card fraud. Many people have seen entries on the statements that have shocked them. They have had to learn that their card details are compromised through their balances. Most card issues do refunds in such cases. However, the cardholder must work through the hustle of replacing it. After replacing the card, they must update their payment details with the new card details.
Card skimming has become quite rampant. The numbers are quite scary. It has become a common issue in most truck stops during diesel purchases. This is a massive problem for the industry. It involves significant amounts of money. The customer carries no liability. The banks and the merchants must find a way to handle this. They take responsibility for settling disputes when they arise. It leads to too many negative impacts since they lose their money.
Is this a new problem?
This is a familiar problem. Card skimming has been around for ages. It involves using illegal devices to collect someone's debit or credit card details. The fraudsters install skimmers at payment points and collect this data when one swipes their card. Truck stops are most affected because truckers swipe their cards daily.
The cards are the primary payment method for the truckers. When their data is collected, the scammers create a dummy card. They use the dummy card to buy diesel and resell it. The cards have a spending limit, but with technology comes new ways to beat it daily. The scammers have their way of working around the limits. We cannot limit how much they lose through card skimming, but it has increased over the years.
The immediate effect
After scammers obtain such details, it takes a few days and thousands of dollars before the bank or owner notices. The fleet must freeze the card to prevent it from being used longer. It takes quite some time to get reimbursed. By this time, the trucker cannot use their cash to settle bills. In this case, they miss discounts and must wait before getting a refund.
What is the Solution?
There is a need to find ways to reduce this kind of fraud. Different companies have different ways of handling it. Some have gone with GPS and telematics. This system works in a way that a driver can only use the card at specific truck stops, and limits are set depending on the mileage. Once criminals get a hold of the card details, they can circumvent this approach.
Truck stops are advocating for a better and simpler solution. They have suggested the use of digital payments. There will be no need for a physical card. With no card, scammers won't get a hold of the payment details. Just like card payments, loyalty bonuses will be added to payments. There will still be spending limits, location approvals, and approvals for amounts of fuel. Technology is essential, but scammers have become so clever. Therefore, merchants, truckers, and banks must follow current trends. It helps improve security and when dealing with new threats.
