Florida fights gas pump skimmers, environmental rules mean heftier gas prices, and the government releases its final top 10 safety violations of 2015.
These are petroleum industry headlines from the United States.
Florida Busts Skimmers
As of press time, the Florida Department of Agriculture and Consumer Services (FDACS) has recovered 179 “skimmers” from fuel pumps and averted some $19.7 million in economic loss to consumers. As a result, the crime rings responsible are hightailing it out of Florida and relocating their activities to other states. The FDACS is responsible for, among other things, petroleum inspection and weights and measures across Florida.
In spring 2015, the agency began receiving reports from law enforcement and industry personnel of a spike in stolen debit and credit card information. The agency’s initial investigation revealed a common denominator: illegally installed card-reading devices called skimmers at pay-at-the-pump filling stations, said Matthew Curran, chief of the FDACS Bureau of Standards. The numbers show why Florida would be a draw for skimming operations. The state is home to more than 8,000 retail gas stations and some 65,000 pay-at-thepump card readers.
What’s more, Florida drivers are among the top three in U.S. fuel consumption, behind only Texas and California, according to the FDACS. Do the math, and roughly 10 billion gallons of motor fuel consumed annually equal a lot of transactions. Curran said that criminals install several kinds of fuel pump skimmers, but the most common type uses a hidden memory storage device inserted into the ribbon wiring that facilitates the legitimate transmission of debit and credit card information for the authorization and purchase of fuel. This kind of skimmer must be physically removed from a gas pump to retrieve the information.
Another skimmer variety, Curran said, allows criminals to access card information remotely via Bluetooth. Regardless of type, skimmers intercept and record the information being transmitted without disrupting transactions, so neither consumers nor gas station attendants are aware as the identity theft takes place. After the FDACS uncovered the skimming surge in Florida, the agency called for a statewide sweep of Florida’s retail gas stations for the equipment.
From March through May 2015, inspectors found 103 skimmers at 96 gas stations throughout the state, all undetectable to the naked eye, Curran said. “Most if not all” of the skimmers found in Florida are believed to be the non-Bluetooth variety, Curran said. Regardless which device they use, thieves who obtain the card information either sell it or download and then transfer the information to blank debit or credit cards to make illegal purchases. “And individuals take stacks of those to gas stations and purchase fuel with the stolen cards,” Curran said. “They put the fuel into ‘bladders,’ or large, sometimes hidden tanks, and then once they have several hundred gallons, they take the fuel and sell it at rates well below current market rates that you and I can purchase fuel from legitimate retail stations.”
Anyone convicted before 2016 in Florida for illegal skimming could be slapped with a third-degree felony and a five-year maximum prison sentence. But times are changing. Florida Gov. Rick Scott recently signed into law several changes:
- Illegal skimming is elevated to a second-degree felony, punishable by up to 15 years in prison.
- Florida gas station owners must tape the openings of their gas pump cabinets with pressure-sensitive tape.
- Felony requirements now include “possession” of counterfeit cards, not just trafficking them.
- The threshold for the minimum number of counterfeit cards drops from 10 to five.
The result of the FDACS investigation and knowledge share has been fewer skimmers found recently in Florida, but skimming has increased in other states, Curran said. “Some have speculated it is due to our aggressive approach in Florida, flushing them into other states where they may believe they have less of a chance to get caught or lose their skimming equipment,” Curran said. One way to combat skimming, Curran said, is by using EMV technology. U.S. retailers are just beginning to install and use EMV.
EPA Rules Equal Price Jump for Gas
The Environmental Protection Agency’s (EPA’s) fuel-efficiency rules mean drivers must buy pricey gasoline, despite decade-low fuel prices, according to the U.S. Energy Information Administration (EIA). “Although lower gasoline prices may be supporting demand for premium gasoline, the upward trend in sales is more likely driven by changes in fuel requirements for light-duty vehicles in response to increasing fuel economy standards, which will have widespread implications for future gasoline markets,” according to the EIA. The EPA vehicle rules require new cars to achieve better fuel efficiency. To meet those mileage standards and emissions regulations, automakers are banking on smaller engines and more turbocharging. For new-car drivers, that combination means using the more expensive premium gasoline.
Top 10 U.S. Safety Violations
The United States Occupational Safety and Health Administration released its final 2015 numbers for the top 10 most frequently cited violations.
- Fall protection: 7,402 violations
- Hazard communication: 5,681 violations
- Scaffolding: 4,681 violations
- Respiratory protection: 3,626 violations
- Lockout/tagout: 3,308 violations
- Powered industrial trucks: 3,004 violations
- Ladders: 2,732 violations
- Electrical-wiring methods: 2,624 violations
- Machine guarding: 2,540 violations
- Electrical-general requirements: 2,181 violations
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