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Highway Robbery

From electronic PIN generators to supply tank siphoning, criminals will go to great lengths to save a few bucks at the pump.

As gas prices hover near $4 per gallon around the country, fuel theft has become a serious issue. Not since gas prices “skyrocketed” to $0.90 per gallon in the late 1970s has gas theft been as wide scale a problem as it is today. The “fuel and fly” thieves of the 70s, however, are being replaced by a more cunning brand of criminal. Gas thieves today employ a complex and devastating array of methods to plunder petroleum.

After a particularly costly robbery at a Circle K in Florida, CNN ran a story that featured PEI member Mike Macho, a service technician for JMP Solutions (Tampa, FL). The station had been ripped off for nearly 1,000 gallons of gas, due to a disabled pulser. “Theft is really rampant here in Florida,” says Joey Cheek, president of JMP Solutions. “Some of it is even organized with gangs.” Technicians have found vandalized pumps with gang signs on them that indicate the pump has been tampered with and will give free gas.

Florida isn't the only state seeing a spike in gas-related crime. Across the country, incidents of theft at convenience stores and highway stops are being reported. Robert Peavey, president of PumpTex (Beaumont, TX), says thieves are a major issue in Texas. The sophisticated criminals tend to be located in the urban areas, but even rural parts of the state face thievery. Peavey's rural customers are finding things like screwdrivers wedged into consoles or lids pried off of fill caps. Typically, the unsophisticated thieves use brute force tactics such as these to disable pumps. In the urban areas, however, it's a bigger problem. “Urban thieves are a lot sneakier,” says Peavey. “They'll take the time to actually open the door and rig the pump.” These “sneakier” criminals have forced stations to put up physical barriers on pumps such as locks on the doors and stainless steel collars for the pumps.


Robert Peavey	Joey Cheek

Detecting pump burglary is difficult. Once a pump is tampered with, it sometimes takes days before an employee notices something is wrong. “Clerks are conditioned to not pay attention to the credit card transactions anymore,” says Cheek. “The person in the store just looks to see the pump turn on and then turn off; they never even have to talk with the customer.” Theft often occurs right in front of an employee without that person even noticing.

Tampering with the pump is not the only way thieves are stealing gas. Cases have been reported of gas stolen right out of the underground storage tank. Trailers with false floors are parked over the fill caps and a hose is dropped into the UST to siphon out gas. Electronic theft is also becoming a problem, especially at truck stops. With the right code, a person can put the pump in standalone mode and pump their fuel for no price. Electronic PIN pads and special keys also have been developed to alter the programming on pumps.

While these criminals have become increasingly cunning, there are simple ways to detect their activity. One way to detect theft, according to Cheek, is to take mechanical meter readings daily and compare those with electronic readings. “If a mechanical reading says 200 gallons were pumped and the electronic one reads 100 gallons, then someone stole 100 gallons of gas,” he says. And with gas stations operating on razor-thin margins, those 100 gallons can be a costly loss. Peavey also suggests adding security cameras to monitor the pumps and keep an eye out for suspicious activity.

Peavey and Cheek say both of their companies are seeing an increase in calls from customers asking for help. “Customers are leaning on us to help secure their equipment,” says Peavey. A number of his customers also have had to switch their dispensers to prepay only. This makes pumping gas slightly less convenient for motorists, but it greatly reduces the number of gas-and-go thieves. Cheek typically advises customers to simply pay attention. “It never hurts to walk around every day and look at the pumps,” he says. “If something looks out of place, there's probably been some tampering going on.”

5 More Tips To Help Your Customers Prevent Gas Theft

Essentially all fraud involving tampering requires access to the equipment, undetected altering of hardware, and knowledge of electronics, no matter what brand of dispenser is involved. Thieves are getting more and more bold, sophisticated and aggressive. No single solution will completely prevent attacks, but careful procedures can significantly reduce the opportunity.

Check the video security camera tape daily for suspicious activity at the pump.
Check the POS settings and change settings on any older POS that allows a "hot-authorization feature."
Regularly monitor and compare the "pump total" and the ";station total" reports on the store's point of sale and tank monitor.
Inspect your site frequently, keeping watch for loose pump faces, doors, stray wires or other parts.
Be alert for abnormal traffic patterns on the forecourt.

This information was provided by Gilbarco Veeder-Root.

This problem does not affect only distributors and their customers. Responsibility has been placed on the shoulders of the manufacturers to offer products that are more theft-resistant. Manufacturers have developed security kits for pumps that include locking mechanisms for the door, as well as devices that prevent fuel flow when a pulser is damaged. Manhole covers with locks are also being offered by some companies. Cheek advises distributors to look to manufacturers for products that will enhance security for customers.

While this problem is not new, it is becoming more costly, and a heavy burden is placed on the industry to develop products and education to prevent gasoline theft. Says Peavey, “What's bad for the customer is bad for us.”

Preventing Theft At The Pump

As fuel theft becomes more common, station owners are turning to their distributors for advice. Robert Peavey and Joey Cheek have compiled the following list of ways to help your retail customers crack down on fuel theft.

Install security cameras. Digital Video Recorders (DVRs) can capture suspicious activity as it happens, and prove or disprove incidents of fuel theft. Plus, customers will be less likely to attempt theft if they see a camera at the pump watching their every move.
Remove manager's keypads from all pumps. When keypads are unattended, it's easier for computer-savvy thieves to hack into the pump's programming system. Whenever possible, remove keypads and bring them into the station.
Change the PIN number often. Deter theft by frequently resetting the keypad's PIN number.
Mount locks on dispensers and UST lids. Key locks on pumps can be pried open fairly easily without attracting much attention. Heavy duty, aftermarket locks take longer for thieves to open and make the process much more conspicuous.
Remove large signs and advertisements from station windows. When potential gas thieves see that the clerk's view of the forecourt is obstructed, they are more likely to try to steal fuel—and get away with it. Rearrange window signage so that the clerk can see the customer at the pump, and the customer can see the clerk at all times.
Train clerks to watch for pumps to go off line. If a thief with some serious mechanical know-how switches the pump to standalone mode, the POS will show that the pump has gone offline. Make clerks aware that this may be a sign of theft.
Reconcile often and investigate discrepancies. Every station owner is required to reconcile their inventory to detect leakage, and doing so can also detect theft. Reconcile reports as often as possible (at least monthly), so significant fuel theft can be tracked and questioned soon after it occurs.
Install locks on tanks and probe risers. Every opening to the fuel tank is a possible opportunity for a thief to steal fuel, and every opening should be locked and secured.
Look into buying security kits. Manufacturers are developing methods to prevent tampering, such as specialized locks and automatic shutoff valves.
Kill power to pumps at night. If the station is not open 24 hours, turn off power at night, when theft at the pump is more likely to go undetected.
Set the pumps to prepay mode. It's the single best way to deter drive-offsthe most common type of fuel theft.
Be aware of suspicious activity. Watch for multiple people fueling up on one pump or a vehicle parked at a pump or near a UST for an extended period of time. Some truckers use PIN pad programmers to steal gas then leave the connector hanging out of the pump for the next guy, so check pumps often for signs of tampering and vandalism. An attentive staff is a fuel thief's worst enemy.