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While methods to combat shoplifting, theft and organized retail theft abound and are regular topics of discussion in the industry, retailers must also ensure they are protecting the forecourt.
There are many ways that bad actors can strike at and around fuel pumps. What most people are familiar with are skimmers — a device that allows criminals to steal customers’ payment information.
While the number of cards compromised by skimmers increased more than 300% between 2021 and 2022, “the advent of new technology … has made it a lot more difficult to say the least” to get one up and running, said Scott Negley, senior director of product management at Dover Fueling Solutions.
He highlighted chip-and-pin technology as well as contactless payments, adding that demand for these payment methods is so high that more than 80% of pumps sold by Dover Fueling Solutions now have RFID readers.
But it is certainly not the end of the risk facing retailers and consumers.
“Some criminals are very adept at creating new ways to bypass security technology,” said Karl Langhorst, senior vice president of operations for asset protection firm ALTO USA and former senior director of loss prevention for The former convenience division of Kroger.
For companies still using older fuel delivery and payment technology, vigilance is key. Physical inspection of the pumps inside and out can usually catch skimmers. Retailers can also use their phones to look for strange Bluetooth signals from their pumps, Negley said.
But skimming isn’t the only kind of backyard theft out there. Fuel theft is also a risk.
“The amount of fuel theft in the industry — that’s it another one of those costs that make it difficult for us to do business,” said Scott Barrett, director of fuel pricing procurement and logistics for Wills Group, during a NACS webinar on frictionless fuel management in September.
Experts said the problem has grown as gas prices have risen in recent years — especially for diesel, Negley said.
So how should companies protect themselves?
“The c-store operator doesn’t need to turn their store into Fort Knox to reduce the potential for criminal activity,” Langhorst said. “They must, however, educate themselves about the types of criminal activity their store may be subject to, assess the likelihood of those crimes occurring … and then strategically decide what deterrents they want to take.”
Bypass at the pump
If people understand the mechanics of a fuel pump, they can access it without paying by putting the dispenser into service mode using a “jumper,” Negley said. This will remove the pump from the point-of-sale system temporarily — a setup primarily used by someone like a maintenance specialist, who may need to repeatedly pump gas to make sure repairs are working properly without having to continue to get authorization. from the fund.
Even if would-be thieves don’t bypass the mechanisms that measure and charge fuel, there are ways to earn huge discounts.
“There are devices now that you can actually use to mimic the dynamic rotation of an odontometer, where all the measurement actually takes place,” Negley said.
He said that because these mechanisms are exposed in some fuel pumps, the machine can be tricked into turning much more slowly. So if a thief reduced the speed from 100 beats per minute to 10 beats per minute, he could pump fuel at a 90% discount.
As with skimmers, one of the most important things shop owners can do is regularly inspect their pumps, Negley said. They should also watch out for machines that say they’re down when they shouldn’t be.
Stealing from the tanks
The pump is not the only potential failure point for fuel safety.
“I’ve seen U-Haul trucks pull up over tank pads and run pumps down fill pipes to try to steal gas from gas stations,” Barrett said in the webinar.
There are metal caps on these tubes that should snap into place. However, if a thief can remove this cap, they can access the large tanks and remove the fuel.
“Secure underground tank covers and tank caps with reinforced padlocks with bolt protection are a good deterrent to this type of fuel theft,” said Langhorst.
Analytics can also help retailers identify different types of fuel theft, Negley said. Companies can very quickly and easily know exactly how much fuel is in their tanks at any given time.
So if “all of a sudden I see some significant drops in my tank volume and nothing is coming out of my distributors, that’s a flag,” Negley said.
“The c-store operator does not need to turn their store into Fort Knox to reduce the likelihood of criminal activity.”
Carl Langhorst
Senior Vice President of Operations, ALTO USA
Smart security steps
When you want to keep a c-store’s fuel safer, gathering information is vital.
“Owners can educate themselves on these threats through trade associations, both local and national, as well as by talking to their competitors to see what criminal activity they’re experiencing,” Langhorst said.
He also noted that landlords can contact local law enforcement, who may be willing to do safety inspections for free. This has the dual benefits of helping a company identify potential weaknesses and can “build a strong relationship with law enforcement and make them feel welcome to come [the] location,” he said.
When trying to make a store’s catering areas safer, some of the steps are surprisingly simple.
“A lot of times we go to a website and the default password [needed to access the pump] it’s in electronics,” Negley noted.
Since several people need access to that password, such as station managers, repairmen or even regulatory officials, it can be difficult to use a unique password, much less change that password regularly, he said. However, having an easy-to-guess password makes it easier for bad actors to access the pumps.
Retailers should also make sure that pump and cap keys are kept safe and away from potential intruders.
Negley said Dover Fueling Solutions has begun to incorporate the ability to not only include cameras on the fuel pumps, but also broadcast that video to the pump screen to show users that they are being watched. He said artificial intelligence can allow companies to take this technology even further.
“If you give the bad guys the right time, hardware and know-how, they’ll figure it out,” he said. “So all we can do is try to build as many layers as we can to be able to prevent that.”