Posted on 08/19/2010 9:51:07 AM PDT by davidosborne
Greetings my fellow FReepers. Before anyone complains that this post in "unsourced" let me say that as a recent VICTIM of Credit Card Fraud as well as a law enforcement officer I am very concerned about this epidemic that is hitting our nation HARD ! My main concern about this is....... WHO is paying for it? When a victim of credit card fraud reports unuathorized transactions to their bank they are reimbursed immediately for the unlawful transactions. The bank then becomes the victim, but who reimburses the bank? Is it US the taxpayers? If so what is the DAILY cost of these transactions? Who is tracking this data?
For the past 2 months I was TDY to Fort Knox, KY and while in Kentucky I got a phone call from DISCOVER asking if I had made a charge at a grocery store in OHIO. I told them no and my card was immediately canceled and I was reimbursed for this charge. Important to note is that the fraudulent transaction on my account was done using a physical CARD SWIPE, not a keyed in number, but I had possession of MY card, so the only way that could be possible is if a FAKE PHYSICAL card was made using my credit card account number.
Important to note is that I DID NOT file a police report, and DISCOVER did not request that I do so as a condition of refunding the ammount of the fraudulent transaction. My first day back to work, as a law enforcement officer, after returning from military duty, I personally took 4 reports of credit card fraud. Now these are cases in which the bank REQUESTED that the victim file a report with law enforcement. So you can be sure that the REPORTED cases are only a fraction of the actual cases out there. Have you or someone you know been a victim of credit card fraud? What are we going to do about this?
Same thing just happened to me. My American Express card, which I had in my possession in Oregon, was physically swiped in Illinois.
AMEX is out the money, and perps got away with about $200 before AMEX caught on and started denying the charges.
My credit card company denies any charges that are made outside my usual spending loop, then calls me to confirm. (American Express.)
It’s my understanding that the merchant is backcharged. I had my ATM card number used at a Mexican Resort some years ago.
Why don’t stores require proof of identity when using a CC? I know. They don’t really care as long as they get paid...but...
Two cases for me. One a couple of years ago someone was buying stuff on the internet so they didn't need a real card. The buyer did have my name and address because I was mailed the first copies of a CD subscription. He bought through one of these ads which said "sign up for XXXXX and get some free electronic equipment". The bank's fraud department called me and canceled the card without me having to act. Other than the CDs, most of the stuff purchased were services that were never actually provided so the merchants weren't out any real money other than the transaction troubles. I have no idea how the card number and my name were stolen.
The second time someone bought some stuff at three Wal-Marts and a grocery store in Maryland. I caught it on the credit card's site before the bank's fraud department figured anything out, so I called them and cancelled the card. That time the thief got about $500 total of real merchandise, but I don't know what it was. That time it was either stolen at a restaurant or their credit card processing company because everyone at the table who used a card was hit.
What are we going to do about this?
I think that we'll have to go to a PIN system on all credit, debit and ATM cards. The credit card companies hate that because it makes it more inconvenient to use the card so we're less likely to use them instead of cash.
This is getting easier for crooks to do. Everyone has a camera phone. Crooks standing in line behind you take a picture of your card while you do the transaction. With that info they can use your number or make a bogus card.
Keep your card covered when you bring it out for payment.
ping
It is against the contract they sign with MasterCard, Visa or any other credit card company. The stores are the ones who get stuck with fraudulent charges, but the CC companies won't let them take any stronger anti-fraud actions than checking the signature and getting confirmation from the CC company.
Some people have "Check ID" on their signature line, but even that isn't allowed under the CC agreements. However the only place I've heard of which doesn't allow that and then check ID is the post office.
Yes, an unauthorized purchase was made from a computer on my business card. The card company noticed that it was not a purchase that was usually made with the card and suspended it. Someone made a Western Union money transfer to Canada during the time of the Olympics. My card is used only for U.S Postal purchases, supplies at office stores and Internet business purchases. Apparently, someone at one of those places took advantage of my card number. We try to keep computer security up to date. The money transfer was not finalized and the funds returned to my account.
1. Pay cash whenever possible.
2. If you use a card, never allow it out of your sights. In other words, always find a way to pay cash in restaurants.
3. Always use your card as a credit card in retail stores. Use your PIN as infrequently as possible. Just press “credit” instead of ATM/Debit & follow the directions on the keypad screen.
4. Keep your hand over the numbers on the front while waiting to pay and don’t hesitate to take control of your card from a sales person who lays it face up on the counter.
5. Read and monitor your statement.
6. Bank locally. Being able to speak face-to-face to a representative of your bank/credit union if there is a problem is a plus.
7. Never give your CC number over the phone. Never.
8. Pay cash. I know that this was #1, but it can’t be stressed enough.
How about a link please?
where are they getting the cc numbers for the fake cc transaction..
I’m going thru the same issues as we speak. It sucks!!!!!!!
You’re fortunate. wells Fargo called my husband to ask about some purchases which he did not make. After an “investigation”, WF decided that we are responsible for all charges. Fortunately, they were small and we returned what was purchased and sent to us; we got the charges canceled by the vendors. We’re puzzled by the whole thing. But we are going to find another bank. We loathe Wells Fargo!
When it happened to us, we discovered that an employee of the bank had sold a credit card list. The employee had been “laid off” from a previous bank for doing the same thing but never prosecuted.
Really? Humph, you’d think the CC companies would want to help their customers. Oh, wait...
About 9 months ago, my card was hit for less than $2.00. This is a small and seemingly negligible amount. The security guy at my bank said they test batches of numbers with a small transaction amount before they go to the bigger amounts and the bank had been checking out all amounts under $5 that were outside the normal purchase area. It’s possible that the number could have been tested before a fake card was made.
http://www.statesman.com/blogs/content/shared-gen/blogs/austin/blotter/entries/2010/08/19/man_arrested_for_credit_card_a.html
Try making a travel reserveration for tranportation, lodging, car, etc. without one.
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