The cat and mouse game of Credit Card fraud

[Dehn0045]

About a year ago we got a notice that our card was shut down due to suspicious purchases. There were two charges for an online service that sends cash with a credit card payment, both around $60. I'm not sure if if the fraudsters actually made off with any money. Thankfully we didn't have any losses, other than changing all of our automatic payments. I suspect that our card was stolen by a skimmer at a gas station, but who knows.

Fast forward, I've been using a chip card since last year. Thankfully we keep a close eye on things and we noticed a charge at a local restaurant, $23, that wasn't one of us. First, checked to make sure our cards were still in our wallet, yep. I called CC company and they said that it was an in-person purchase, which is unusual. Thankfully, again it looks like we will be covered without any losses. This time I am thinking that my card got compromised by a "shimmer", which is like a skimmer but actually takes the card info off of the chip and is inserted in the chip card slot. I think they then clone a magnetic strip that tricks the reader into thinking that the chip failed and uses a "fallback" on the magnetic strip.

In any case, especially with debit cards, try to only use ATMs and card readers that are indoors. If the readers look fishy, don't use them. Look for tabs hanging out of the chip reader slot. And most importantly keep an eye on your purchases, in this case the fraudsters could have avoided the automated fraud alertts for quite a while.

 

[magpens]

Thanks for posting Sam. . It is a matter which requires constant surveillance and care.
I have had my cards compromised on four occasions and the attempted (perhaps successful ... will never know) frauds were thousands of miles away and in one case, in Europe.

 

[Herb G]

I had a credit card for 3 years with zero problems.
Until....
I used it at Penn State Industries. ( They canceled the order, citing delivery problems on a previous order of mine, that they screwed up.)
The next day, I get a call from the fraud dept. of my credit card, and there's over $1200 of fraudulent charges on my card.

When I posted about it here, a lot of other people commented that they too had their card info stolen by PSI. AFAIK, nothing was ever done about it on PSI's part. They were contacted, but they never replied.

Needless to say, they will never get another dime of my money.
Their loss, not mine.

 

[randyrls]

Most banks have online notifications. I have mine set to send me a text message on my cell phone for any debit transactions on my checking/debit or credit card. I usually get the notifications within about 10 minutes of my use of the card.

 

[Woodchipper]

We do not use a debit card, period. Aldi's grocery did not take credit cards at first but now they accept them. Our CC holder called after our vacation in California a few years ago. There were three $100 ATM transactions in Fresno. We were never in Fresno. They issued a new card.

 

[Gunnarkouper]

Credit cards

I was told by my bank, credit union, that when using the debit card use only as a credit card. If you use as a credit card, and it's stolen, you have no liability for any charges made against your card that are not yours. If you use as a debit card and somebody gets your pin #, they can remove every dollar from your checking and maybe savings account also, depending on how it is set up. You will then have to hire a lawyer and go through the legal system to recover your money. The credit card company may or may not help you recover your money.
My credit card numbers have been stolen several time and have never had a problem getting my money back. Usually 24 hours or less. A new credit card arrives a couple weeks later
I think it all boils down to DO NOT USE A DEBIT CARD! Only use at your bank or someplace you are very comfortable with and feel safe.

 

[JimB]

I was told by my bank, credit union, that when using the debit card use only as a credit card. If you use as a credit card, and it's stolen, you have no liability for any charges made against your card that are not yours. If you use as a debit card and somebody gets your pin #, they can remove every dollar from your checking and maybe savings account also, depending on how it is set up. You will then have to hire a lawyer and go through the legal system to recover your money. The credit card company may or may not help you recover your money.
My credit card numbers have been stolen several time and have never had a problem getting my money back. Usually 24 hours or less. A new credit card arrives a couple weeks later
I think it all boils down to DO NOT USE A DEBIT CARD! Only use at your bank or someplace you are very comfortable with and feel safe.

We do not let our bank issue us a debit/ATM card. It is strictly an ATM card for the exact reasons you mention. Most people don't realize they can get a card that is only an ATM card because banks automatically issue Debit/ATM cards.

As you mention, someone can empty your bank account with a debit card and it can be a long process to get your money back. I know people who had to wait months to get their money back.

 

[monophoto]

I've been through this so many times - - -

Seriously, I suppose you could exist on cash, especially if you don't travel much, but in the 21st century, having a credit card is almost essential. And that's especially true if you do any traveling. So it is necessary to take precautions:
- Wife and I each carry two credit cards. One is a shared account and is the one we use most often, but if something happens to compromise that account, we each have a backup. And because our backups are different, the catastrophic contingency of losing a wallet doesn't leave us with no way to pay for things.
- I check each credit card daily by going to the on-line site, and if there is a transaction I don't recognize, I call the credit card company immediately. The credit card companies understand the issues, and are really good about jumping on problems quickly.
- Our primary account is set up to send us text messages whenever there are charges that trigger specific alarms. I have alarms set for charge threshold, for all telephone/on-line charges, and for charges originating outside the US.
- The biggest PITA associated with a credit card problem is dealing with automatic payments. I keep a list of the vendors who I have set up for automatic payment so that if a problem occurs, I know who to contact with the new account information.
- I always let each credit card company know in advance when we are going to be outside our immediate community.
- As others have noted, there are important differences between credit cards and debit cards. I have a 'debit card' that is restricted for use in ATMs. Because I'm cheap and don't want to pay processing fees, the only time I use it is when I go to the ATM at my bank, or if we are traveling outside the US.

 

[Dehn0045]

Most banks have online notifications. I have mine set to send me a text message on my cell phone for any debit transactions on my checking/debit or credit card. I usually get the notifications within about 10 minutes of my use of the card.

This is definitely a good idea. I have it set up and usually get the text message before I sign at the register, within seconds of scanning my card. While you're at it, also check the phone numbers, names and addresses associated with your account. One time I found an unusual phone number on my account, now I check that pretty regularly.

We do not let our bank issue us a debit/ATM card. It is strictly an ATM card for the exact reasons you mention. Most people don't realize they can get a card that is only an ATM card because banks automatically issue Debit/ATM cards.

Thanks for the info Jim, I didn't know this was a thing, will definitely check it out!

 

[Dehn0045]

- Wife and I each carry two credit cards. One is a shared account and is the one we use most often, but if something happens to compromise that account, we each have a backup. And because our backups are different, the catastrophic contingency of losing a wallet doesn't leave us with no way to pay for things.

Good idea having different back-ups.

Another thing that I do, which I admit is a little strange, is I memorize our primary credit card number, expiration and CVV. This way when I enter payment information on websites it is not helpful to have them store my CC info, so I'm not tempted to let them do it. Also, if I am ever without my wallet I always "have" my credit card...

 

[randyrls]

Seriously, I suppose you could exist on cash, especially if you don't travel much, but in the 21st century,

I do exactly that. NEVER pay for anything where i can use cash. Never had my account info stolen from a fiver.

Purchase a special credit card and load the card with currency before leaving on a trip. Cash the card out on return. In Canada and Europe, they bring a gadget to your table, swipe the card right in front of you. Sign and give you a receipt.

 

[Woodchipper]

I have my CC numbers, expiration dates, and CVV numbers written in a code that I'm the only one in TN that knows the code. Even my wife doesn't know it.

 

[TellicoTurning]

I read through this post, but wasn't going to comment, but Thursday night at dinner we got a phone call from the bank fraud center that there were 4 charges on my ATM/debit card that day... 2 local and 2 in Chattanooga.... haven't been to Chattanooga in 2 or 3 years... the two locals were ours and not a problem, the bank canceled my card, said the two in CHA would be credited back... one has been, the other will be tomorrow most likely according to the bank... it has to hard post to my account before they can do a credit... I got my new card in the mail yesterday and only have to go into town and activate it at the ATM before I can use it...

This has happened to me only once before some years ago when I was s till in Houston... we had dinner at TGIF and the waiter evidently scammed my card, sold it to someone in New Jersey and someone in Oregon... I evidently bought someone in New Jersey a new stereo system, but the guy in Oregon got greedy and exceeded my account limit and was denied.

 

[MSpringer]

Its interesting that others have had issues after ordering with PSI. The only time a card of mine has ever been compromised was right after i placed an order with them last year. I thought it a coincidence at the time but now I am not so sure.