Lucky Supermarket Victim Of Card Reader Scam

7 Dec 2011 · 2 min

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2:23

In a Consumer Watch news segment, anchor Julie Watts reports a growing card‑skimming problem at Lucky supermarket self‑checkout lanes. At least 80 customers and employees have lost an average of $500 each after fraudsters installed skimming devices on debit and credit card readers, copying card data and PINs. Initially discovered in 20 stores, the breach has now been confirmed in three additional locations (Petaluma, Novato, Sunnyvale), bringing the total to 23. Lucky advises anyone who used the self‑checkout lanes in recent months to close or closely monitor their bank accounts, and notes that its toll‑free line has received about 1,000 calls. The segment highlights that understaffed retail environments make it easy for criminals to install skimmers, which are readily purchased online. Experts suggest possible insider involvement, and the Secret Service has joined the investigation. Lucky claims the lanes are now being monitored and are safe to use, but the incident underscores broader security vulnerabilities in self‑service retail technology.

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Lucky Supermarket says that the damage from a security breach is growing. Dozens of customers and employees are now reporting money is missing from their accounts. On the Consumer Watch, Julie Watts tells us that number will likely increase. Julie?
Yeah, Lucky is now advising all customers who've used that self-checkout line at any Lucky store anytime in the past few months to close their bank accounts immediately. At least 80 unlucky customers and employees have now reported their money missing from their accounts. Now, the typical loss passes about $500, which is the common limit of an ATM withdrawal. About a week and a half ago, the chain announced it found tampering devices on the debit and credit card readers in the self-checkout lines at some of its stores. The devices, called skimmers or sniffers, allow crooks to copy cards as well as PIN numbers and then access user accounts. Security experts say they're easy for criminals to install, especially in a down economy.
Most of these retail establishments are understaffed. The stores don't have enough people to watch every single point-of-sale device at every single cash register.
Now experts say skimmers are sold online, and well, crooks can buy them either new or refurbished. Lucky originally said the skimming devices were found in the self-service lanes in 20 stores, but 3 additional stores in Petaluma, Novato, and Sunnyvale have now been added to that list. And this might just get worse. Lucky tells us its toll-free line was ringing off the hook today. It's gotten about 1,000 calls from people concerned that they've been affected by the skimming problem. Meanwhile, Lucky says it is safe to use card readers in its self-checkout lanes now, and it says those lanes are being monitored. But again, it says anyone who used the self-checkout lane the last few months should close the account, or at the very least, keep a very close eye on it.
I, I would imagine that Lucky's doing an extensive investigation, but any Absolutely.
And the Secret Service is involved. I mean, we have many, many different outlets looking into this at this point.
I think what bothers people is that this has gone on at 20 stores. Right. So nobody caught on before?
Well, you know, it's still unconfirmed, but what people are saying is oftentimes in this situation, a company which installed these machines, maybe somebody who used to work for the company has come back and tampered with the machines. Yeah, that's true.
All right, Julie Watts, thank you.