Credit card skimming scam nets millions

By Vanessa Tripodi

We have long been advised that fast food is bad for us, but with the introduction of the new healthy options at McDonald's, we have been able to feel better inside and out about eating out. However, for McDonald's diners in Western Australia, their financial health has taken a hit in the latest credit card skimming scam -- the most sophisticated Perth police have ever seen.

On October 5, 2009, McDonald's customers in Perth started to report unexplained withdrawals and missing funds from their accounts. Credit card details and PINs were stolen during transactions at a number of McDonald's outlets around Western Australia. Victims then noticed overseas withdrawals had been made and payments charged to their credit cards for which they were not responsible. Despite only EFTPOS facilities at Perth's McDonald's outlets being targeted, thousands of people have since been the victims of identity theft and thieves are thought to have netted over $4 million. Withdrawals were made from the victims' accounts in other areas of Australia, as well as from the U.S., Canada, the U.K. and Sweden, of amounts ranging from $40 to $1,000.

Those behind the credit card skimming are thought to be part of a global crime gang, and no visible skimming devices have been found on the McDonald's EFTPOS machines. The police are refusing to reveal how the credit card details were stolen; however, speculations include "dummy" EFTPOS machines being installed to wire credit card details to the thieves. Another possibility is that the phone line connections of the EFTPOS machines were compromised.

As the Perth police have not seen this type of credit card skimming operation before, they are working with authorities in New South Wales, where the police are more familiar with similar fraud and identity theft crimes. McDonald's retailers in Perth have since replaced all of their EFTPOS machines but there are still reports of accounts being skimmed. Some McDonald's stores have even ceased to accept EFTPOS or credit card payments.

As with any public scare of this magnitude, there have been a number of reports that the credit card skimming is widespread and was also taking place at Coles outlets and Peak and BP service stations. The police have assured the public that these reports are unfounded and untrue. In response to the spreading panic, police are urging anyone who has used his or her credit or debit card at a Western Australian McDonald's outlet during October to check statements carefully and change PINs immediately.

The Perth credit card skimming incident is a shocking reminder that all Australians should vigilantly review their credit card statements each month and immediately report any suspicious transactions. To protect yourself against identity theft and credit card fraud, never write down your PIN or tell anyone else your account access details, and make sure to change your PIN on a regular basis, regardless of where you've eaten recently.

Article by Vanessa Tripodi

Published: November 2, 2009