Posted on 06/13/2013 12:06:12 PM PDT by Theo
I received an email and text from Discover Card this morning, saying that I might be the victim of credit card fraud.
I gave them a call, and learned that someone had charged over $10,000 worth of items over the past two days, at local stores: Walmart, Office Max, Publix, Macy's, and so on.
My wife bought two shirts for me on Tuesday from Macy's, using her Discover Card, and within a few hours someone had somehow physically re-created the card and was using it all around town.
Discover is not holding us accountable for the charges, and will reimburse us shortly. I've contacted LifeLock (where we have an account), and notified them of the breach. I've pulled my three credit reports, and it looks clean. Seems that only my Discover Card number was stolen.
I plan on filing a police report, after I receive documentation from Discover Card detailing the fraudulent use of my card. They tell me that the police can secure photos and video from security cameras at the place where the card was used, and we may be able to track down the culprit(s).
The odd thing is that just a couple of days before the fraudulent charges, we received replacement cards from Discover, because they were concerned that our account had been compromised.
Any FReepers ever been the victim of credit card fraud? Any recommendations on how to proceed? Any idea how the perps created a physical card with our credit card info on it?
Yes. Maybe 10 years ago.
Someone got my number on my Visa. Changed the mailing address to a PO Box in Brooklyn, NY. After a while, they started making the minimum payment and started making purchases.
I noticed that I didn’t get a bill one month. Went to the bank. They cancelled the card and told me I wasn’t responsible for any of the charges.
I asked if they were going to investigate. They weren’t interested in catching the criminals and simply dropped the matter.
If the thieves physically recreated the card, that’s more sophisticated than just stealing the info to use in online purchases.
Somebody had a mechanism to read and store the info from the magnetic strip and reprogram it onto a blank.
Never hand your card to an employee to swipe for you. Of course this doesn’t mean they can’t hack the store’s card reader, but it’s more likely that they are using a smart phone to capture the info.
Someone probably used a skimmer in order to re create the card and make it their own. Your not responsible for the charges, but DAMN 10,000 good Lord someone went on a shopping spree..the problem is many of those stores don’t ask for ID otherwise they would not have been able to purchase those items..whoever the thief was is smart, he/she knew where to go where it was less likely to get caught
I’ve had credit card fraud on two different cards. The charges were very small, and my card companies questioned the fraud early. One was a gas charge in Mexico, where I had never been. I’m having a problem with the fact that Discover allowed that much to be charged on your card in such a short time. You obviously haven’t used your cards like that in the past, so the amount of fraudulent purchases you describe should have alerted Discover that there might be a problem early on. I used to have credit cards with Bank of America, and if I was going to purchase a large ticket item, I would contact the bank ahead of time to alert them. I also used my cards overseas, and always notified the bank of the countries I would be visiting, and the dates I would be gone.
Credit Card companies work to eliminate fraud. It’s in their best interest.
I've noticed of late that cashiers will ask to see my card after I've swiped it at the register. But they don't bother to check the signature. What they do is key in the CVV code. The CVV is three digits printed on the back of the card, except for American Express, which prints four digits on the front of the card.
The CVV is not contained in the swipe data. Thus, a card made by recording stolen swipe data on a dead card will not work at, say, Staples, where they enter the CVV, but will work at a grocery store, where they typically don't. Also, I've noticed some gas pumps now ask you to enter your billing zip, a measure which also defeats cards made from stolen swipes.
I read somewhere that total fraud volume amounts to five or ten basis points. It's a big number, but proportionally, it's tiny. You may recall during the 2012 election that Newt proposed out-sourcing immigration security to the card companies.
Never let anyone see the CVV, just the signature. Cover it with your finger.
The only credit card I have ever had “compromised” was a Discover account 15+ years ago - and it was used to “buy” some kind of services in Russia... We never figured out how someone got the account info - as it had never been used outside of “brick-and-mortar” stores...
Unfortunately, there are cases where credit cards are essential - try renting a car on your Debit card... not a good idea.
Cards that give airline miles and other rewards, paid off monthly, are a great idea too.
But they all take discipline - something the vast majority have no concept of.
I have. Several years ago I recived my monthly credit card statement and saw that over $7,000 were charged to my account down in Louisville KY (I live in S.E. Michigan). It was no big deal. What really pissed me off tho, they said I had to file a report with the Michigan State Police and their closest post was about 35 miles away.
When I went in to the post, they told me it wasn't necessary that all I had to do was file with my local sheriff dept......sheesh!
Anyway, I took the report back to my bank and that was the end of it, I wasn't responsible for the charges.
A couple months ago I noticed a charge on my debit card for about $10.00 and an "800" number. I called the number and asked about it and they told me it was for a pair of socks which they sent to an address in California. My bank took care of that too and issued me another card...........
I have no idea where my card numbers were compromised and other than paying cash for everything, I can't see an end to the problem. Just keep a close eye on all your credit card and banking transactions.........
My Discover Card was used in Seattle, while my wife and I were at home in Arizona.
Discover took care of everything, and we’ve had no problems since then.
FWIW, YMMMV.
I notified Visa that I don't go shopping every day in Key West......and they smoothly and politely handled the whole affair, giving me total dollar credit on my next bill.
The only thing Visa wouldn't do was give me any information regarding if the culprit was caught, who it was, or any and all other details. The case was closed for me after my phone call and there was no feed-back call.
I really didn't care to pursue it anyhow, it wasn't worth my time....seeing I was reimbursed and their Fraud Department was handling things.
These petty identity thefts are happening every hour of the day everywhere across the fruited plain....and I can easily figure it out that the credit card companies DON'T want to get involved following up a case with every single customer out of thousands and thousands after an offense has been committed.
They probably have all they can handle with trying to CATCH the perps.
Leni
I honestly don't know of any POS system that asks for the CVV code. Typically, when any numbers are keyed in, it is the last four digits of the card, to prevent re-encoded credit card fraud. As for gas stations, if you show them it is a gift card (hence why they've switched to them), they will waive the zip code requirement, or not require it at all if you pay inside instead of at the pump.
Fraud, though, is a tiny number overall mostly because credit card companies tend to try to enforce investigations into the crime. Vs fraud in insurance claims which dwarfs credit card fraud by at least two orders of magnitude.
In order be useful against fraud, the CVV must be part of the information presented to the card company in order to get the transaction authorized or declined. Of course, it would be more secure to have the customer enter the data at the customer-facing card reader. But the requirement to enter it at the POS appears to be recent, and they evidently haven't had a chance to update the card readers with appropriate hardware and software. So, they instruct the clerks to enter it instead.
As far as signatures, on AX, the CVV is on the front, above and to the right of the card number. When I use my AX at Staples, they don't even look at the back of the card.
Ours was hijacked by the Russian mob (out of Baltimore) not too long ago and they managed to take close to 7500 before our bank shut it down and called us.
We’ve set it up with them that they call if there is a purchase over $250 and a withdrawal at a non affiliated ATM higher than $100.
It’s so common place that the state police and the treasury agent pretty much yawned on the phone and the bank had our money back in the account in 48 hrs.
that $10 charge was a test as was someone charging a small item on my old BOA Visa (which I never use)that was cancelled immediately.
I noticed that every once in while when I went to use my card, it would be missing. I would hunt all over for the card and the next day there it was in my wallet.
It happen so often that I actually was going to talk to my doctor because I feared there was something wrong with me.
At least three times I had my cards changed, but it kept on happening.
Finally one of the card companies called and asked if I had just had my car serviced at a specific companies. I told them no, and stopped off at the station. They told me that had cameras and would check it out. The police said they would pick up the tape.
The next day when I went over to my next door neighbors house for coffee, and told her about it, she began to cry and admitted that she had been taking my card out of my purse when I would walk my dog in the morning. She would return it the next day.
The total amount she took from me was over $2,000.
I did press charges against her, and really cut her a break, because she would have done jail time. I just requested she reimburse me, and insisted she seek psychological help.
We haven't spoken since last Aug.
That works, but CVV is better, because it catches even embossed counterfeits (although those are more difficult to make than simply recording an intercepted swipe).
http://www.amazon.com/Credit-Embossing-Plastic-Embosser-Machine/dp/B005F0B2G6
http://www.youtube.com/watch?v=FuP--kL1UcM
As for gas stations, if you show them it is a gift card (hence why they've switched to them), they will waive the zip code requirement, or not require it at all if you pay inside instead of at the pump.
That must be nerve-wracking for the thief, given a minimally well-designed POS would show the clerk what type of charge is being tendered (AX, DS, MC, VI, or gift card).
Have you posted yet, Nully???
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