Credit Card Scams are an all too commonplace issue. The frequency of this doesn't always stem from anyone's laziness or incompetency with safeguarding their stuff. While you may be putting forth your best efforts; there are cracks, loopholes, and technicalities, that can leave you exposed to being exploited by even the most amateur of scammers.
I didn't realize how easily information can be stolen until an incident happened that hit home. While I was reeling from the loss of a colleague, who was my direct report, my friends and I decided to head out to dinner on a Saturday night to lift my spirits a bit. We went to a boathouse in West Orange, NJ and overall we had a great night.
So imagine my surprise when my friend alerted me, six days later that someone at that restaurant had "skimmed" his card information and decided to purchase $8,000 dollars worth of Versace merchandise. I saw the screenshots and was appalled. I immediately went into warrior mode and threatened to sue the establishment.
I felt an overwhelming sense of guilt and anger, as I was the one who picked the place. It was all our first time there and I loved the ambiance and the view of the lake. So for that memory to be tarnished like this, didn't sit right with me.
I visited the restaurant the next day and spoke with the manager on shift about the incident. They were very understanding and concerned and I explained the issue while taking care not to directly place blame on our waiter that night, as we really have no proof that it was them.
The manager understood the necessity of addressing this issue and putting this complaint on file.
If the perpetrator gets away with doing this and isn't put on notice it will become a pattern and damage the restaurant's reputation, if this news gets out. I exchanged the contact information for both the on-shift manager and the regional manager with my own as well as my friends'.
While talking this over with my friend and handing over the contact info, a few things about this situation didn't make sense to me. The credit card used that night, was used sparingly and never once made any purchases that large, prior to; or was ever used for any designer items, at that. So if American Express were monitoring these charges, how was this missed?
I couldn't wrap my head around how both of those variables didn't trigger an immediate red flag. What bothered me the most was how casually he found out. By just randomly checking his accounts. While he has had experience getting text message alerts, and requesting confirmation of an attempted purchase; this time it didn't alert him through those regular channels.
While this topic is heavily researched and discussed, I felt especially compelled to chime in, when a friend of mine fell victim to this. The way his credit card company completely "missed" this transaction, in its entirety while claiming to monitor your spending habits and alert you if something is off, has me questioning everything.
While Amex and the two merchants in question have since rectified everything, I couldn't help but think about how eerily close he and many other people come to be the next victim of identity theft. You can always recover from credit card fraud and are often not held liable for purchases that you don't authorize; however, identity theft is not so simply undone.
Unfortunately, there are people who fell victim to this earlier in their life, even as children, and still have not been able to fully recover from it and do things normally. If someone is able to easily attain your credit card information, what's to stop them from pushing their luck and seeing what else they can glean off of you? Usually, credit card fraud is the first step in attempting to steal your identity.
If you aren't sure how this came to be a popular crime of "choice" please check the links below, and see how this wave became so appealing.
It's more widespread than you think: https://www.youtube.com/watch?v=qAF1y_Vo-Rs
Where we're headed if we don't get this under control: https://www.youtube.com/watch?v=c-DxF1XVATw
Here's how you can better protect yourself from being a victim:
Remove all autofill settings- From your internet browsers (it's not always worth the convenience)
Don't save your passwords- Anywhere, including credit card information, one-click buys, etc.
Set up text messages and fraud alerts- To inform you immediately of each and every transaction made. while this can be annoying and raise your data messaging rates; on the days you don't routinely check your financial accounts, it will notify you sooner of any suspicious activity.
Check your bank, credit, and all financial account balances every week- Preferably every three days, but no more than a week. Unfortunately, you cannot trust that your financial institution will do more to protect your financial information than you will.
Use virtual cards and gift cards when shopping online- If you are an avid online shopper, anything can go wrong and information can be intercepted from checkout to receipt of goods. The less attachment they can have to your actual information, the better.
Avoid doing anything on guest, public or open wireless networks- It's not secure and the provider of that network can't be held liable as they assume you used it at your own risk, by connecting to it knowingly without entering any passwords or verifying its security beforehand.
Be patient- Don't take these extra steps as an inconvenience, and "abandon the cart" as a result. This level of discipline needs to be cultivated and appreciated, as it's better to take the extra steps to make a valid purchase and forget about it later than it is to make a quick purchase and spend more time afterward fighting a fraudulent charge.
Guard against identity theft- One of the many ways it starts from it starts out as a credit card scam, it may start there, but doesn't stop there and often progresses to more egregious crimes. If they can get your card info with little to no effort, what makes you think they won't try their luck and see what else they can get from you? While credit card losses can still be easily recovered, your stolen identity, won't be.
Carry and keep cash more often- While most POS terminals have the tap to pay option available it may help to adjust your habits to not utilize cards as much. You can't "skim" the leftover change from cash transactions.
Check for skimming devices:
Recognizing skimming devices in stores- https://www.youtube.com/watch?v=oBg6NFPq01k
Spotting them at ATMs- https://www.youtube.com/watch?v=_yx0eu36QXM
Repeat offenders- https://www.youtube.com/watch?v=gh6JruxwqVg
Other habitual changes- https://www.youtube.com/watch?v=gJo9PfsplsY
Credit Card and Identity Theft- https://www.youtube.com/watch?v=2xBddrmbG7w
In conclusion, if hackers want to get to your stuff, make them work for it. Don't contribute to making it easier for them or anyone to get your information. You have to balance the difference between what's worth it for you between your convenience, and your protection. While you're at it, lock and/or freeze your personal credit profiles.
If you're a business owner, set up fraud alerts and monitor your accounts weekly. If someone can successfully acquire your credit card information, what makes you think they will stop there? They will most definitely go after anything else they can access. Usually, the next step is your identity. It's much easier to recover from a credit card scam than identity theft.
There's a difference between a credit freeze and a credit lock. Both are similar in nature but are regulated differently.
Credit Freezes are free and are regulated by state and federal laws. Credit locks are only between you and the credit bureaus and while both options are only effective if you lock all three; depending on the service it can cost you. Freezing works if you're not applying for any new accounts, anytime soon, while locking it is advisable if you routinely apply for new credit.
You can find more info on the differences here.
Here are the links to each personal credit bureau union to get that process started:
Transunion: https://www.transunion.com/credit-freeze
Experian: https://www.experian.com/freeze/center.html
Equifax: https://www.equifax.com/personal/credit-report-services/credit-freeze/
For Businesses:
There are currently no mechanisms available to freeze a business's credit profile. The only thing suggested is to monitor your business accounts regularly and to set up fraud alerts to notify you of any suspicious activity.
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