Comment Encrypt the data for starters (Score 1) 332
PCI (Payment Card Industry) will deal with this eventually, as traffic should be encrypted from the reader to the backoffice server or whatever brokers the transaction to the payment processor. What needs to be done is encrypt the card information at the reader at the pump, even if the information is transmitted via serial connection (out of PCI scope today). Prudent companies keep the keys to the gas pumps secure as well as do at least daily checks on the pumps (crack the box, look for skimmer).
I suspect this type of skimming is more prevalent that is getting press for.