Credit Card Fraud

[peakbagger]

I got hit again with fraud charges on my credit card again, so the old card is canceled and they are sending me a new one. It seems like I am getting a new card (and number) about every 6 months due to fraud charges of late. I think this most recent one and one about 6 months ago were online purchases through what look like are legit websites. My guess is someone has hijacked the site's payment process. I try to use paypal when I can but not all websites even legit ones offer it. Kind of annoying as I have a couple of automatic payments on the card so once I get the new card, I have to change the card number over with the merchant. I pay my balance off monthly and do charge a lot to the card as the cash back does add up. I avoid doing any automatic payments direct from my checking account as I do not have any fraud watch and ability to dispute charges with my bank like I do with my credit card.

Looking over the recent transactions, the fishy one went through about 4 days ago via a web purchase and then there was a flurry of activity yesterday for restaurant purchases in several restaurants around the country. At one of the restaurants someone tried rerun the card multiple times. My guess is the card number got resold on the dark web once the initial charge seemed to go through and multiple people bought the number and started using it.

So time to take out the backup card and wait a week for the new one to show up.

 

[StoveInNH]

One of the best features you can turn on is an email alert for each transaction. It won't stop fraud, but will let you know about it very quickly so you can alert your credit card company.

 

[johneh]

Been there done that seems to be a growing problem
Sometimes wish I could go back to cash.
My wife works for a national bank in a small town
she does the fraud work for the Branch, every day
she sees 4 or 5 people whose cards have been compromised
either credit cards or debit cards and find that most
people bring it upon themselves you have to be super
aware nowadays

 

[ABMax24]

There's so many ways for credit card data to be stolen. Even big box chains have fell victim and had the credit card info of millions of shoppers stolen. There's computer malware that can pull your stored card data or even keyboard loggers that grab the information of your personal PC. And then there's the credit card skimmers installed directly onto the POS machines to steal the card data.

 

[woodgeek]

Sucks. I've had my card number stolen at restaurants, at a car dealership (the dude stole three of our cards at once), and from a skimmer on a DCFC EV station. I guess I have been lucky.

I prefer the restaurants that are doing the card scanning at the table now.

I do mostly use PayPal or buy chit from Amazon.

 

[tlc1976]

I have accounts at 2 different banks that are not linked.

One I keep a savings that is not accessible by the card. And keep a minimum balance in the checking for online purchases or traveling. Even in the savings I don’t keep that much. Most every town around here has both banks in close proximity to each other, so I just pull cash from one and drop it in the other to keep it topped off.

The other is my main one, and I keep a linked checking and savings, but also a separate account that’s not connected by the card, and that’s my actual savings.

And with all my efforts, my card has been compromised several times. Always from local transactions because I don’t use it anywhere else. Online has actually been the safest thing. My bank for the local stuff introduced me to card valet, which was wonderful. I could set alerts, limits, areas, transaction types, turn it on and off at will. No more problems. Then they dropped the service, so I have to be extra careful again. Thankfully we don’t have the so called national coin shortage anymore and I can use cash. But another thing they did was block all transactions from the UK. Because there have been so many random mass attacks originating from there. I don’t need to buy anything from there anyway.

 

[bogieb]

One of the best features you can turn on is an email alert for each transaction. It won't stop fraud, but will let you know about it very quickly so you can alert your credit card company.

I was going to suggest the same thing. I have my main credit card set up for notifications for each transaction. Or, you can set up for transactions over a certain $$ amount.

I also have a second credit card that is only used for automatic payments (cable, cell phone - things that give me discounts for automatic payment). That way, I don't have to change them if my main cc number is changed. I have this second cc set up for an alert if it goes over $600 (instead of each transaction).

I had to cancel my main credit card last month because I lost it (it was never used so don't know what happened to it). It was still a pain to change over some merchants that keep that cc on file, but not a big deal.

I've been fortunate that I haven't had any issues with unauthorized transactions (KOW).

 

[Ashful]

In light of this, I’ve always wondered why people use or even carry a debit card. Requiring a pin does add some (extremely minimal) security there, but still… it’s linked to your money. You can keep it linked to a separate minimally-funded account, but that limits its practical use, as well. The credit card limits your exposure to fraud to only insignificant charges associated with card replacement, usually free.

 

[tlc1976]

In light of this, I’ve always wondered why people use or even carry a debit card. Requiring a pin does add some (extremely minimal) security there, but still… it’s linked to your money. You can keep it linked to a separate minimally-funded account, but that limits its practical use, as well. The credit card limits your exposure to fraud to only insignificant charges associated with card replacement, usually free.

I’ve thought about doing that. But for me, it’s one more account to manage and keep secure. One more source of debt, and delinquent payments if something happens where I get sick or hurt or whatever. I’d rather not have that hanging over my head. I’ve had 2 long hospital stays in less than 5 years so it’s certainly likely again.

I’ve always been of the mindset to only buy something if I have the money up front. A house is the only exception. Was raised that way and just kept it going. I don’t buy from a large variety of places.

I have one credit card, for Home Depot. Only because it saves me money. No annual fee. I use it maybe once or twice a year for the deals on big purchases, if I need something, then pay it off as soon as it shows up a few days later. Like I saved over $50 when I needed a water heater. $30 on my $300 attic insulation. And of course only if they got the best price to begin with. Yeah something could happen to me during those few days but it’s not as likely as using it full time.

 

[Ashful]

Having a credit card does not mean carrying debt, and there’s no reason to not pay it off in full every month. How did you even qualify for a mortgage without any credit card history?

 

[bogieb]

Having a credit card does not mean carrying debt, and there’s no reason to not pay it off in full every month. How did you even qualify for a mortgage without any credit card history?

I pay off my cards every month. And I forgot about my HD card that I also use for discounts on the occasional purchase. A lot of times though, I put smaller purchases on my cash back cc now that HD no longer gives a 5% discount for using their card. If I think there is a largish purchase coming up, I'll put a couple $$ on the HD card so I get a 10% coupon once I pay the bill.

My ex and I qualified for a home loan way before we qualified for credit cards. Of course we bought the house in the late 80's, when credit cards were not given to everyone with a pulse. Didn't get our first credit card until the mid 90's. Our credit history consisted of buying vehicles.

 

[begreen]

Of course we bought the house in the late 80's, when credit cards were not given to everyone with a pulse. Didn't get our first credit card until the mid 90's. Our credit history consisted of buying vehicles.

Yes, that's how we established credit. Bought our first new vehicle in 1981 and paid it off 1.5 yrs early. Took out a credit card in 1982. Bought our first house in 1984.

 

[peakbagger]

I used to have access to a local credit union run by employees of my employer. My dad used to run one for his company. Credit scores didnt rule the decisions as the credit committee knew who they were lending to as they probably worked with them. Most employee were there for the duration so things had to be really bad before the stiffed the CU on a loan. Sure they did on occasion have defaults but as a non profit they could live with them. Sadly most small credit unions have either shut down or merged into large regional credit unions that are effectively non profit banks usually paying their upper level employees handsomely and their lending policies are not much different than a commercial bank.

 

[festerw]

In light of this, I’ve always wondered why people use or even carry a debit card. Requiring a pin does add some (extremely minimal) security there, but still… it’s linked to your money. You can keep it linked to a separate minimally-funded account, but that limits its practical use, as well. The credit card limits your exposure to fraud to only insignificant charges associated with card replacement, usually free.

I haven't used my debit card for anything other than ATMs in close to a decade for exactly those reasons. Everything goes on my Amex, last time there was fraud they called me about 5 minutes after it was used, cancelled it, and issued a new card.

I've started using Google Pay for a lot of things online since it creates a one time virtual card number so even if it's compromised it's not tied to your normal card.

 

[begreen]

I have used a credit card all around the world, almost always without issue. It makes traveling much less stressful to not have to carry a ton of cash instead. In the past 40 yrs. the only incident was on our last trip. A fake cab driver in Bogata would not take cash for a trip to a restaurant. That was a warning sign. As soon as we sat down at the restaurant I alerted the credit card company. A few minutes later they emailed me that there was a questionable charge and I said to stop payment and cancel the card. They did and that was it. We carry a second, different card and completed our trip with that. The one important thing to do is to notify the cc company in advance before traveling. They set up a special watch on the card(s) during that period. The system for MC and Visa works very well.

 

[ABMax24]

The one important thing to do is to notify the cc company in advance before traveling. They set up a special watch on the card(s) during that period. The system for MC and Visa works very well.

I'm not sure how it is in the US, but up here that's no longer required. I have a MasterCard and Visa each with a different bank and neither require notification of travel plans.

Just went through that here today, Visa at least had a message on the automated system, MasterCard I had to wait on hold for a representative to tell me that.

 

[Highbeam]

I am “forced” to carry a debit card because the large discount PNW grocery chain only accepts cash or debit. My kids are forced to use debit because they are too young for their own credit cards. Ideally, the debit cards would stay locked in the safe because they are much riskier.

On topic, the last time my visa number was stolen they shut it off and sent new cards as usual but the wait was nearly 30 days! That means the recurring bills needed to be switched once to our backup credit card and then again to the new visa. That wait sucked. We setup autopay on everything that will allow it.

 

[begreen]

I'm not sure how it is in the US, but up here that's no longer required. I have a MasterCard and Visa each with a different bank and neither require notification of travel plans.

Just went through that here today, Visa at least had a message on the automated system, MasterCard I had to wait on hold for a representative to tell me that.

Well, we haven't traveled since before the pandemic, so we will see. 5 yrs ago it was strongly recommended for travel abroad. It would be great if no longer required. About 10 yrs ago I went to pick up a rental car on arrival and Visa refused the card because they were not notified.

 

[Ashful]

I used to get sent to Europe for a week or three of travel each year. Always carried a Discover (Novus) primary card and a Visa or Mastercard backup card, and I don't think I ever bothered to notify any of my credit card companies that I would be traveling.

On a few occasions in all of those years I did have a charge flagged and got the call from the credit card company to verify, and then they'd ask for my travel dates to set up the appropriate blocks in their system. But honestly, in maybe 25 extended trips overseas, that maybe only happened three or four times, and was always resolved with a phone call.

I've seen more than one of my colleagues have wallets lifted in Italy or Greece, the usual cute young female pick-pockets on trains or in crowded shopping areas. That's usually a good way to ruin a day chasing down all of the required phone numbers and making all of the necessary calls to cancel cards and report the missing ID.

 

[peakbagger]

A new wrinkle with my credit cards I am running into is that anti robocall software used by my mobile phone company has flagged some of their credit card numbers from texting to my cell phone. I do not even get a notice that the there was an attempt to text me the warning. I cant use two factor identification with my credit card company as the number get blocked at apparently on the phone carrier level. I do get an email but it took me awhile to figure that one out.

 

[Ashful]

I think this is one scenario where even the AI available today could be used much more effectively to help. I think spam email and text messaging could be eliminated to such a degree as to make it no longer a profitable venture for the offenders, thus possibly eliminating it altogether, over time.

 

[sloeffle]

Work in IT Security so I always see articles about the latest and greatest credit theft "technology". Some of the rules that I try to follow - Use Apple / Google Pay / PayPal when you can ( these are one time transaction ID's ), tap don't swipe, and only use a debit card when you have to. Some thing to be aware of, if your PIN and debit card number get compromised you are the on the hook for the charges. If your credit card gets stolen, the bank is on the hook.

Last but not least - freeze your credit, create a online account for the SS administration, and create an account with the postal service. They will send you emails everyday with the images of your mail, and it will also allow you to be notified if someone has a changed your mailing address ( yes this does happen ).

If you really want to go down a rabbit hole Have a unique PIN for each debit card ( if you have multiples ). Use a tool like 1Password to manage your passwords ( >12 character preferably ) so you have can have a unique password for each web site. Some folks actually go as far as creating a unique login per site too. If you have a choice between using text messaging or Google Authenticator for MFA opt for Google Authenticator.

What is a SIM swapping scam and how can you protect yourself? | The Mozilla Blog

These days, smartphones are in just about everyone’s pocket. We use them for entertainment, sending messages, storing notes, taking photos, transferring

blog.mozilla.org

 

[festerw]

I have used a credit card all around the world, almost always without issue. It makes traveling much less stressful to not have to carry a ton of cash instead. In the past 40 yrs. the only incident was on our last trip. A fake cab driver in Bogata would not take cash for a trip to a restaurant. That was a warning sign. As soon as we sat down at the restaurant I alerted the credit card company. A few minutes later they emailed me that there was a questionable charge and I said to stop payment and cancel the card. They did and that was it. We carry a second, different card and completed our trip with that. The one important thing to do is to notify the cc company in advance before traveling. They set up a special watch on the card(s) during that period. The system for MC and Visa works very well.

We've fount that if you booked the travel through whatever card you're using it's unnecessary to call them. We went to London this spring and Amex sent out an email about a week before saying enjoy your trip don't worry about calling us.

I am “forced” to carry a debit card because the large discount PNW grocery chain only accepts cash or debit. My kids are forced to use debit because they are too young for their own credit cards. Ideally, the debit cards would stay locked in the safe because they are much riskier.

On topic, the last time my visa number was stolen they shut it off and sent new cards as usual but the wait was nearly 30 days! That means the recurring bills needed to be switched once to our backup credit card and then again to the new visa. That wait sucked. We setup autopay on everything that will allow it.

My daughter is added as an authorized user on my credit card, she doesn't have access to the entire limit (it's capped at $200) and she just gives us the cash she spent at the end of the month. It's helping her build a little credit history and teaching some responsibility as well.

 

[Ashful]

What is "too young" to get a credit card, these days? I suspect I was 16 or 17 when I got one, likely coinciding with the need to buy gas.

 

[ABMax24]

Whenever they're mature enough to have one. Canada it's age of majority before they can have one, so 18 or 19 depending on the province.

Some kids 22-25 before they are responsible enough to have one, I know people in their 50's and 60's that still shouldn't have one, that can't keep them paid off every money and rack up a bunch of debt in non essential spending.

I think I got mine at 19, and I still have never carried a balance. My wife had one at 18 and it wrecked her credit for almost 7 years with poor spending and repayment habits. She would have been much better off to get her first card at 25.