Skimmed at the Pump: How COVID-19 Lockdowns Increased Gas Pump Skimming

Abstract

Few schemes for monetizing stolen credit card data are as bold as the fuel theft scam. Skimming devices embedded inside gas pumps steal credit card data from customers which can be used to engage in any manner of illegal economic activities, however, empirical research on gas pump skimming is virtually non-existent. This study uses data from the State of Texas to examine the patterning of gas pump skimming, focusing on changes in prevalence in the months prior and the year following COVID-19 lockdowns being lifted in June 2020. Our findings suggest that (1) skimmer hits significantly increased after COVID-19 lockdowns and (2) that this “COVID effect” persisted even when controlling for other structural characteristics, including theoretically-relevant factors such as the average price of gas.