Credit card terminals at some California, Colorado Safeways compromised

Sources at multiple financial institutions report tracking compromised credit card terminals within multiple Safeway stores in California and Colorado. Safeway also confirmed that it is investigating skimming incidents.

Banks noticed a string of customers in the Denver and Englewood areas of Colorado were seeing their debit cards drained at ATMs shortly after shopping at local Safeways, reported Krebs on Security. Specifically, the customers had checked out at specific lanes in compromised stores.

"We have an excellent track record in this area," Safeway spokesperson Brian Dowling told Krebs. "In fact, we inspect our store's pin pads regularly and from time to time find a skimmer, but findings have been limited and small in scale. We immediately contact law enforcement and take steps to minimize customer impact."

Dowling then hinted that the skimmers problem extends beyond Safeway to other retailers.

In California, banks suspect the same fraud in Safeway locations in Castro Valley and Menlo Park. ATM frauds have been linked to customers at those locations since early September.

Krebs reports that skimming involving checkout lanes usually involve someone on the inside at the affected retailer. Eventually, chip-based credit and debit cards should help minimize these types of scams.

For more:
- See this Krebs on Security article

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