Black market soaring at the pump
A black market for diesel and gasoline has rapidly spread around the nation, with organized crime gangs using fraudulent credit cards to syphon millions of dollars in fuel from gas stations into large tanks hidden inside pickup trucks and vans.
Stealing fuel can be less risky than selling drugs or other illegal endeavors, and criminals can make $1,000 or more a day re-selling the stolen fuel at construction sites and unscrupulous gas stations, or to truckers looking to cut costs, investigators and industry experts say.
“It’s pretty rampant,” said Owen DeWitt, whose Texasbased company, Know Control, focuses solely on helping gas stations prevent fuel theft. He said the crime is worst along Interstate 10, from Jacksonville, Florida to Southern California. “California and Florida are the two worst; Texas is No. 3.”
Black market diesel started becoming a big business when credit card “skimmers” became more prevalent around 2006, DeWitt said. Thieves install these devices at gas station pumps, where they record card information as unsuspecting customers fuel up. The information is later transferred to a magnetic strip on a counterfeit card. The problem has only grown as the devices become more sophisticated.
The black market has grown quickly in part because the thefts total a few hundred dollars at a time, and prosecutors were slow to prioritize them. But as fuel thefts become more organized, they have caught the attention of state and federal authorities around the country.
Agriculture and Consumer Services Commissioner Adam Putnam’s department takes the lead on prosecuting these crimes in Florida. He said they used to be considered a “victimless” or “slap- on-the-wristtype crime, and yet they were making more money doing this than a lot of other criminal activities that had a lot higher sentences.”
Thieves often use dozens of fraudulent cards at a time, inserting one after another to fill up hidden tanks. One gang used fraudulent credit cards for a month to steal $100,000 in diesel from two stations in central Florida. In other cases, one thief parks a truck to block the clerk’s view while another pumps diesel directly from an underground tank through a hole in the vehicle’s floorboards, investigators said.