Today I became involved in a conversation between my dad and his coworker. When it reached the topic of cyber-crime, i started listening in. His wife had used a card on a fake website and it was stolen. A story we’ve all heard many times.
However, my dad brought up his own personal account that was very interesting to me. He registered a Costco American Express card for himself and his girlfriend after his last trip to Costco. The card numbers are different and in no way linked. For three months he had never used it, and she had used it twice at Costco. There have been a handful of charges on both over the last few months.
About a couple weeks or so ago, the American Express fraud department called about her card, saying it had been used at Wal-Mart in Kansas. Of course the card was cancelled, and not much thought was put into it.
Are unused cards still at risk?!?
Last week, they called about my dad’s card. The one that has been in his desk drawer untouched for three months. It had also been used a handful of times in another state.
After making calls to American Express and the supervisors in the fraud department, no one seems to care. My dad is convinced that it was American Express’ side that has stolen his card, who else has the info?
So whoever is to blame, it seems that fake websites and key loggers are not the only ways for your credit card security to come into jeopardy. Brand new cards can be issued pre-stolen.
Internal threats are real, and it seems some companies won’t accept that. Why would neither Costco nor American Express take any word of a problem on their side?
What you can do today to protect yourself
You could start with setting up your AMEX card to alert you for spending. This way even if it’s new and never been used you’ll know right away through a text message or email whether something’s been used.
If you’ve already had a card compromised, reporting it right away is a good step. The reason is that you can head off Identity Theft which recently has been discovered to be close on the heels of any card theft, wreaking havoc months or even years later.
To report card theft to the police in San Diego the only way is over the phone at 619-531-2000 and keep a record with this handy sheet. Ask the officer filing your report for the case number and immediately follow the steps at the FTC’s Identity Theft Center to protect your identity proactively.
You may need a printed copy of your police report in order to provide the maximum protection for up to a year instead of just a simple 90-day restriction. The Fair Credit Reporting Act (FCRA) notes the differences between these two:
An initial fraud alert entitles you to a copy of all the information in your file at each of the three nationwide agencies, and an extended alert entitles you to two free file disclosures in a 12-month period following the placing of the alert.
If you ask for an extended alert, you will have to provide an identity theft report. which includes a copy of a report you have filed with a federal, state, or local law enforcement agency, and additional information a consumer reporting agency may require you to submit.
Yet another challenge: Obtaining Police Reports
As far as the FTC is concerned, the lack of a written police report is serious enough to include this recommendation:
“Be persistent if local authorities tell you that they can’t take a report. Stress the importance of a police report; many creditors require one to resolve your dispute. Remind them that consumer reporting companies will automatically block the fraudulent accounts and bad debts from appearing on your credit report, but only if you can give them a copy of the police report. In addition, a police report may be needed to obtain the fraudulent application and other records the company has.”
Wakeup Call: ID Theft
What most of us don’t realize is that simply notifying the bank or credit card agency in the age of ID Theft is just the first step in protecting your identity. At the end of the day, the job of protecting yourself falls to you.
Federal Trade Commission Online Complaint Form
{ 2 trackbacks }