Beware Of Unauthorized Charges To Your Credit Card

Well it looks like someone got ahold of my credit card number and made a few unauthorized charges (to the neighborhood of $1,500+). You may want be on the lookout as many of my purchases lately were flashlight related online purchases using this same credit card number.

Ouch! Did you use a site that didn't have SSL encryption? Or emailed a CC #?

I definitely did not email it. And, I don't think I have ever used a website without SSL, I always look for the "lock" icon at the bottom right of my screen.

FWIW, this can happen even if you only submit transactions through encrypted websites...happened to me on a site that used 128-bit for credit card transactions.

Remember -- the credit card number can end up "somewhere" where "someone" has access to it...at a retailer, for instance. In this case, I'd placed an order with a major electronic components supplier (not Mouser) in California. Two days later, I was receiving multiple phone calls from various retailers verifying whether I'd placed orders with them (thank goodness they called!!!) because the shipping address was different than the billing address...these charges were attempted using the same CC number with my last name and the thief's first name. They had been attempting to charge $500-800 worth of crap on my card. They tried at 11:50pm and again at just after midnight...I suppose to see if I'd made a payment that went through and if they could make the charge...these were internet orders they'd placed. (skateboard crap and girl's clothes...geez...)

The only thing I could figure is someone at the company I placed the electronics order with was responsible for processing web orders and got the CC number and either ordered all this junk themselves or sold the number(s) to other people.

After some investigation, I located the phone number of the individual(s) doing this and placed a phone call to their local law enforcement office (Sheriff's office). I also placed a call to their number and told them I had no qualms about flying out there and paying them a visit with the aforementioned deputy.

The charge attempts ceased. I have no tolerance for thievery.

JM-99

Happened to me about 6 weeks ago. As near as I can tell, I had travelled to Washington, DC a week before. Someone must have ripped off my credit card number, since I used it on several meals and in a bookstore in Union Station. Luckily the credit card company called me to verify a $1500 charge. Obviously I knew nothing about it. They also tried to use it to charge $350 on the Home Shopping Network, but since the maximum charge/day without prior approval is $1500, they didn't get anywhere with that. The CC company was able to stop the $1500 transaction before approving it to the online retailer.

I think these folks are savvy, and know that $1500 is a default daily transaction amount many companies put on their cards. I had to close the account and open a new one, but I don't know how to stop theft unless I don't use my card, which kind of defeats the purpose of having one.

--Bob

it has happened to me twice in the last 2 years since we moved here, and never before then.

You dont have to do anything online at all for it to happen. People are more afraid of online stuff, but it's much more likely to happen to you at the local burger joint that you give your CC to pay for dinner or anywhere that you give a minimum wage clerk your credit card.

In both cases for me the bank caught it as a fraud before I even knew it had happened. In neither case had I actually lost the card. The first time was a bunch of small sales but all in consecutive stores down a street, like the guy had taken my card number and gone shopping down the street. The second time they tried to get a western union money gram thing for like $500 and send it to some foreign country, I forget which.

So yes, you must always check your statements! But in both cases for me the bank took care of it and sent me a new card right away. I wasn't actually expected to pay for it or anything.

What about Debit cards? Like the ones you can use like a credit card?

Are you covered with that too, or are you out the money? What if they over-draw your account, but you get the money back, do you still have to pay for over-draft charges?

I have a debit card and it has the MasterCard logo... I only use it at places where they swipe it in front of my eyes.

I hate to admit this one, but I put my Bank of America card into an ATM, punched in my code, got some money, and left. Yes, the card was still in the slot and the code still in. Someone (this was on a college campus) came after me and took out around $500, which was the max. They then tried to take out more, but the machine refused them.

The next morning I noticed that the card was gone and notified BOA. They gave me my money back (by the end of the day) and didn't charge any extra charges. They did begin an investigation, and said that the person withdrawing after me was clearly NOT the same person, so they believed me.

I don't know if they ever caught the person who came in behind me. I felt like a bonehead for leaving the card in there. But the bank came through with wonderful customer service and were very nice to me the whole time. Needless to say, I doubt that I'll ever do that again!

--Bob

Debit cards are from your checking account... Many major card vendors say they will give you the same rights as a Credit Card (by law, CC's are much more "user friendly" when recovering from fraud).

A CC card will place a temporary "credit" in your account for the disputed charge. I.E., you are not out of pocket for the money until the dispute is resolved.

With a debit card, in general, it is like a bad check in that the money is gone until the bank decides to put it back in--So, you could be out of luck with an empty checking for 30+ days until the bank is satisfied and returned your funds.

Also, a "true" ATM card (without the MC or Visa etc. mark) cannot be used without a PIN code. A MC/Visa debit card can be done with just a signature (or over the phone) without any code--therefore more easily used by the bad guys.

Whenever I get a new bank card (debt/atm), it frequently is a debit card and comes with the MC/Visa label. I cut it up and tell the bank to send me an ATM card without the MC/Visa mark.

Fortunately, I have not been subject to major fraud yet--knock on wood--so I have yet to personally resolve any debit card issues yet.

-Bill

Fix a couple places above from "debit" to "ATM" card... Had a brain freeze and forgot ATM. -BB

I have four cards, two of my own and two belonging to my employer. I came within one day of denying a charge from simplybargans.coX for misrepresented goods 1.5 years ago. I was doublecharged for a cab ride from Nivelle, Belgium to Brussels for a flight home (on my corporate card) and after 2 months, I still have a positive balance of ~$95 that doesn't belong to my employer! Try to fix it over the phone- good luck! At the end of the day, I find cards to be very secure way of doing business. Maybe I've just been lucky. :shrug:

I will also add that I have prolly made ~100 purchases from fellow CPF'rs and never had anything lost, coming or going, including international. Maybe I've just been lucky! :shrug:

Larry

Right after September 11, 2001, somebody made over $400 charges on my credit card to a French electronics retail website. I was so used to just paying my card balance that I didn't look too closely.

In January 2002, I decided to take another look. Of course, by that time, it was too late. I told my credit card company, USAA, about it and they said, "Sorry, but you have to notify us within 30 days (If I remember correctly)." So I told them to cancel my account and I would get a competitor's credit card. They then offered to split the fraudulent charge 50-50 with me if I stayed with them, so I did. I lost about $200, not a huge deal to me, and got a new account with them.

Now I check my statements more closely.

One more story for the pile-on.


I have had 3 transactions go bad at the local level:

1. just for feet, put a valid approval number (for a smaller amount) with a $7000 charge amount through. medium problem, had to sign affadavit

2. relax the back, typo. no problem

3. restaurant. waitress ran card through multiple times for about $500 total and pocketed the cash. medium problem. waitress now in jail.

No problems online so far. And I charge about $100K a year online.


2 side benefits of a CC:

1. the points or rewards can be nice if you use it enough

2. about $500 worth of charges a year never show up on the card. the merchant must lose them I guess. so that's $500 back in my pocket. grocery stores are good about this it seems.

I'm glad this has been brought up again. I brought it up a couple of months ago. I have always gone to "safe" sites, (or so I thought), like here or Bladeforums or Knifeforums.

I was a late bloomer to computers but have been online since 1998 and ordered stuff from all over the net and never had a problem. Not so anymore.

In the last 2 months, I've had 2 bogus charges added to my credit card. They weren't much but I was shocked. One was for $29.99 and the other $49.99. I called the numbers that are on the charges listed. They both were memberships to porno sites!

Yeah, yeah, I know. I never go on porno sites because everybody does. Well, guess what? I NEVER do and NEVER have! Okay, don't believe me but it's true. I'm not a prude but I don't need that crap. When I called the numbers, they said that I had applied. When I said I hadn't, they assured me I had! Well, I told them if they didn't credit my CC, I would report them to the FBI. They quickly said they would refund the charges.

I was lucky because someone from the net had ALL my CC info and had only subscribed to 2 porno sites and made no other charges. I had to cancel my card that I've had for over 30 years.

The thing is AND AGAIN, I've only perused CPF, BF and KF for the last 6-7 years and bought from their supporters. It's a sad state that safe buying is now a risk, on this "safe" site and others. Buyer beware!

<preach mode on>

Please, folks, don't use debit cards. Once upon a time, they were relatively safe ... not anymore. If your bank gives you one, give it back and request an ATM only card in it's place (so you can grab cash when you need it). Otherwise, use a major credit card and limit your potential losses to $50.

</preach mode off>

Just a couple of quick comments for all those who have a growing concern for this type of trash/fraud...

1) Review bank statements. This can be the make or break on fraudulent charges that hit your account (via debit or check card)

2) Review your credit reports. At least here in the states everyone can get there CR from the big three once a year for free. Again the quicker something is found (and turned in), the less fallout.

3) Review your CC statements. Most CC vendors have built in protection (mandated by fed law) but sometimes they can push some pains towards the consumer by "not looking at your CC statement". But $50 is right on the money (no pun intended).
http://www.ftc.gov/bcp/conline/pubs/alerts/lossalrt.htm

Most of these (if not all) everyone already knows, but I always like to make sure. Tis better to be safe than sorry.

Also some other quick tips/tricks...

For those of you in colleges, request that your student ID be different from the "default". For those that know what I mean, you'll agree whole-heartedly. For those who do not know, please ask where/what that student ID is derived from (or is). This is a major issue, that has come back on a few people I know.

Keep a mental note on signing the back of those CC, debit, check cards... If it is stolen, then you didn't just loose the card... you also lost the valid signature on the back. Some people have one way they sign the back that is different than the way the sign documents, but none the less if someone does a signature check they will look at the back of the card in many cases. I have heard other people suggest that "not signing it at all" or signing "please verify id" (so that the person will ask for additional verification) but that is not up to me to advice anyone to do. Just merely food for thought.

SSL, TLS, and other security protocols are merely to help add additional layers of security that have innate benefits such as confidentiality, integrity, and authenticity. Sadly they are not fool proof. SSL is good to stop sniffing attacks, but do nothing to help if either end is or has been compromised.

Debit cards do not have the fed law protection as credit cards do, but some institutions do have safe mechanisms which can protect the user from fraudulent charges. In some cases the institution will not hold the user liable for the fraudulent charges, much like if someone writes bad checks to your account. In instances such as this, the bank/institution will be the point of contact if such fraudulent charges incur. Papers will need to be filled out, authorities will be contacted, but many times charges will be refunded. It is very important to find out just how much protection is available (if any) for debit cards, accounts, etc from your banking institution.

Again, sorry for the needless banter if everyone already knows this stuff. CPF has always aided myself and others with vast amounts of ranging knowledge, so I would just like to return the favor if only for one .

Sincerely,

Shaman

At this point, with all of the problems with check fraud (either changing the check by erasing the original ink, or by simply using the account information to create a new blank check)--that I have pretty much given up giving checks to anyone except for the monthly bills. I now using a credit card because the fraud protection is so much more in my favor...

Any opinions out there on the weakness with checks/checking accounts?

-Bill

If I may extend the discussion a bit to automatic withdrawal (auto bill pay) from your bank account.

I never thought that allowing a company to automatically deduct money from your bank account every month (for your convienience!) was a good idea.

However, with America Online, it was the only way to get the service, if I recall. So I bit the bullet on that one exception. And got burned.

America Online was desperately trying to stem the amount of cancellations of their service. Sometimes, they'd offer free months to keep the subscriber from bailing. Other times, they'd give various reasons why they couldn't cancel the account and would continue to charge your bank account every month.

When I tried to cancel, the operator said, "I'll give you 3 free months to stay."
"Do I continue paying after that?" I asked.
"Yeah."
"Forget it. Cancel now."
"We can't. The computer is down and we need to give you the cancellation number to assure you of cancellation. Call back on Wednesday."
"No. Write down my name on paper. When the computer goes back up write down the cancellation number and call me. Leave the number on my answering machine."
"We can't. We don't have telephones to call out."
"Forget the cancellation number. Just cancel the account."
"But, how will you know that we've cancelled the account unless we give you the number?"
I said, "You'll know when you stop getting my money every month!" I hung up and immediately told my bank, Bank of America to stop payment against AOL.

For three months, AOL charged me, I complained to BofA that I would find another bank. BofA reimbursed me a total of $45 before they finally stopped payment against AOL. That's when the collection agency started after me! I ignored them and eventually they went away.

AOL had to pay a fine to the New York State Attorney General for fraudulent business practices related to failing to cancel people's accounts. In the news story, people actually cried in frustration or simply allowed AOL to continue draining their bank account, EVEN AFTER they stopped using AOL.

Actually, auto-deposits (such as payroll) to your checking account can also result in problems... Every auto-deposit authorization I have ever seen has fine print that allows them to take money out of your account whenever they want (assuming that the original deposit was somehow in error).

I have had co-workers that did get a bad deposit (too big, or an extra deposit), and then the company took too much cash out and it took awhile to get it all straight again.

-Bill

All the above recommendations are great but in over 40 years of having credit cards, I've never been burnt. I've NEVER had a problem with a credit card. I'm lucky though as I haven't had the experiences as bad as some of you.

What's my mystery and I'm still astounded is that somebody had all my CC info and all they did was join 2 porno sites! Why didn't they charge all kinds of stuff like they did with some of you? Think about it, someone had ALL my CC info and only charged to my account, memberships to 2 porno sites! I'm lucky but astounded!

Gene said:

All the above recommendations are great but in over 40 years of having credit cards, I've never been burnt. I've NEVER had a problem with a credit card. I'm lucky though as I haven't had the experiences as bad as some of you.

What's my mystery and I'm still astounded is that somebody had all my CC info and all they did was join 2 porno sites! Why didn't they charge all kinds of stuff like they did with some of you? Think about it, someone had ALL my CC info and only charged to my account, memberships to 2 porno sites! I'm lucky but astounded!

Click to expand...

I'm no expert at this, but I think "subscription" sites (such as the porno crap) do not verify address or phone information and will simply allow the charges unless you find it and threaten them (as you found out)...

Retailers over the internet (for goods/merchandise) tend to be more diligent about actually verifying the charges -- especially when the billing and shipping addresses are different and/or the charge amount is relatively high. So the Einstein that stole your credit card info probably knew it would be pretty futile to charge merchandise with it with a different shipping address...that's how I located who was doing it to me.

JM-99