How Costco Goes Above And Beyond To Prevent Card Skimmers At The Pump

Aside from the deals found inside Costco's brick-and-mortar stores, membership allows people to purchase gasoline at its many fuel stations, which have been part and parcel of the company's business model since 1995. Costco gets its gas, which is sold under the Kirkland Signature Fuel brand, from reputable refineries and distributors located near each store. And just like the products sold on the inside, the gas pumped outside is also fully guaranteed.

Illegal credit card skimmers are devices attached to ATMs, point-of-sale (POS) terminals, or fuel pumps that capture both a cardholder's PIN and card data so thieves and other ne'er-do-wells can do with them as they please. They are, in no uncertain terms, the bane of consumers, retailers, and financial institutions the world over. According to the FBI, these hacking devices cause over $1 billion in losses each and every year, and that's just in the U.S. alone.

Costco is well aware of these skimming devices and goes to great lengths to combat the problem and keep its customers' financial data safe and secure. So much so, in fact, that it's earned kudos from both its customers and cybersecurity experts alike. Costco's first line of defense starts in the form of actual living, breathing human beings whose sole job as safety-certified gas station attendants is to constantly patrol the fuel islands themselves, assuring that there's always someone around to prevent criminals from ever attaching these card skimmers to the pumps in the first place. But that's only part of their job.

Not only are pump jockeys omnipresent, but they also conduct multiple routine physical checks of the pumps themselves (which are constantly under surveillance via CCTV cameras). These recurring checks include applying tamper-proof seals both inside and outside each pump. Furthermore, every pump is equipped with a unique lock that gets engaged when a store closes at the end of the day. As if all that wasn't enough, Costco uses other security procedures that the public isn't privy to.

Spotting a gas pump skimmer isn't all that difficult or time-consuming, but it's typically not something consumers want to spend time looking for — but should. Chris Clements, Vice President of Solutions Architecture at Cerberus Sentinel, told Threatpost, "It's sobering how much damage a single credit card skimmer can do at a high traffic location like a retail register that may process nearly a hundred credit cards per day."

Costco realizes this and proudly proclaims that it leads "the nation in taking security to a higher level," claims that don't seem exaggerated, given the lengths it goes to stop it. The company fully complies with the 12 main standards (and a litany of sub-requirements) set by the Payment Card Industry (PCI) and undergoes annual audits. Yet, all these proactive security measures haven't stopped criminals from trying. When an incident does occur, though, Costco is known for quickly notifying customers. Erich Kron, a security awareness advocate for KnowBe4, told Threatpost that "Costco has really gone above and beyond by notifying their customers that they may have been a victim, allowing them to check their bank account or credit card statements for fraudulent activity."