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SALT LAKE CITY — One of Utah's most popular craft store chains has been the victim of a nationwide skimming scam.
The Irving, Texas-based Michaels Crafts confirms PIN pads on credit/debit card readers in several stores across the nation, including two in Utah, have been tampered with.
In a prepared statement, Michaels said it has identified less than 90 pin pads that were affected, but has removed more than 7,200 devices "out of an abundance of caution."
Michaels reports two Utah stores -- one at 1128 E. Ft. Union Blvd. in Midvale and another at 2236 S. 1300 East in Salt Lake City -- were affected by the scam.
The Utah stores where tampered equipment was discovered are at 1128 E. Ft. Union Blvd. in Midvale, and 2236 S. 1300 East in Salt Lake City.
The Midvale store on Friday deferred all media calls to its corporate office in Texas.
Under the scam, thieves were able to steal the information on credit cards, including PIN numbers, that are swiped on credit/debit card reading machines used when customers paid for purchases.
A similar scam was discovered by police several months ago in an unrelated incident at card reading devices at gas pumps in Sandy.
Criminals have been known to install such devices by distracting cashiers or posing as repairmen, Joseph LaRocca, senior adviser for asset protection at the National Retail Federation, told the Wall Street Journal. Frequently, thieves will simply replace the stores' card processing machines with ones already embedded with skimmers.
The thieves then use their duplicated credit cards to take money directly out of victims' accounts, typically about $500 per withdrawal, according to Wall Street Journal Online.
It was not immediately known Friday how many Utah customers, if any, were affected or lost money. Michaels believes nationwide, the skimming occurred between Feb. 8 and May 6.
As of Thursday, the company reported less than 100 customer PINs had been used fraudulently.
Michaels encouraged customers in its prepared statement, "to take precautionary measures such as checking their accounts for unauthorized transactions. Consumers who believe their accounts were used without authorization should contact the card issuer directly."
Email:preavy@ksl.com
