[san~man]

I had a Sears card (when they transitioned from in-house to Visa/MC) that I received and didn't even activate (went into my safe) used in Australia for over 2K. Go figure that out, when you supposedly need to call from your land line or phone number on record to activate the card.

Most CC numbers are stolen from data centers via security breaches then used online (AFAIK).

[RickFLM4]

Unfortunately, this happens far too often so don't be surprised if it happens again. While it is a moderate inconvenience it is not nearly as annoying as when someone files a tax return in your name in an effort to steal your tax refund (even if you owe money). That has happened to me and I didn't figure it out until I went to refi my mortgage and pulled tax transcripts. Much bigger PITA than a credit card and the IRS is a POS for letting it happen and never figuring it out, even when my wife and I filed a return the following year from our real address. I get that they may not catch all fraud when it happens but hard to imagine they didn't have some controls to provide a hint something was screwed up when things went back to normal the next year, given they know in general they have a major problem with fraudulent returns. Fun times on the phone with the IRS getting transferred from person-to-person in search of someone with motivation, ability and authority to resolve.

[Bkborn]

Just be happy it was your credit card/ bank account and not your social security #. Had mines stolen by a big box store we get our home tools/ supplies from. Now I have a permanent freeze on my credit so nobody can try to use my social and apply for credit. It's serious matter when u get all these credit application denials and approval letters when I didn't apply for them. Even worst when I try to get them credit inquiries off my credit.

[ezndo]

I check my CC charges everyday so the last time there was an unauthorized charge I knew exactly where/how it happened - gas station. Called my credit union with the exact theft information and although they covered the charge, they refused to investigate. This is why cc theft is so prevalent, the thieves rarely get caught.

[zx10guy]

I had one account with Bank of America get compromised at least 3 times in 2 years. Fortunately, there wasn't any charges placed on my account. Bank of America sent me a letter and followed up with a new card stating there was a breach and my account was involved in it.

This is the system I use. I have 4 credit cards I use for various reason. I have one which I only use for automatic bill pay. That account has never been compromised or hacked. I've had that account open since 1996. I never use it to purchase anything. This way I have a single account I can deal with in case there is a problem affecting the other accounts I pay off of it.

I also never use any debit/cc/atm card for anything other than to use at an atm. I reduce my liability this way as any thief getting a hold of this card number will have direct access to my cash funds. It's a bigger headache having to deal with a compromised debit card due to the ability to access your cash and there is a max liability you're responsible for which I think is $50. But I think many institutions end up waiving it.

With a cc, you're not held liable for any fraudulent activity. And the best part is the thieves don't have direct access to your cash.

I also try to limit my use of cc/atm cards to machines which are in well traffic'd, well lit, and monitored areas. I also try to pay attention to the card swiper to see if there is anything unusual indicating a skimmer might have been installed. Another thing is if you use an atm and it has a skimmer installed, you can still defend yourself from the thieves getting everything they need by covering your hand typing in your PIN with your other hand. The thieves will also install a camera to get your PIN in addition to the skimming device.

[upstatedoc]

Been there, done that. Sux, only good thing was that the credit card company was great. They deal with this shit on a daily basis.

[KingOfJericho]

I have stopped using my debit card altogether. I actually had it cloned using it at the ATM (the only thing I use it for) so now I've even stopped doing that. They took out $500 cash but the bank covered it and killed the card. They were pretty embarrassed that it happened at their own branch.

I had my Citi card cloned a couple of weeks ago. The fraud team immediately closed the card and sent me a new one. I don't pay much with that one so I didn't care much.

My one piece of advice is to ALWAYS pay with a credit card and NEVER with a debit card. Amex is my card of choice and the rewards through the card are great. They're also the best at fighting vendors if they try to screw you (they have more flexibility with this because Visa/MC pay vendors immediately while Amex pays them once a month - it's on the vendor to prove they haven't screwed you).

[Navy Doc]

Yeah it's crazy out there. With technology comes convenience. Also comes with added risk. Even with all the security. Gonna assume that, at least in my case, it would cost more money to investigate to find this fucker than the loss. So they would just take the loss.

[KingOfJericho]

I've noticed many vendors (>25%) are now using the chip technology - no more swiping. I hope this cuts down on it a little bit.

[ptbarnacle]

I never use Debit cards for any online purchases or for that matter, any non-emergency purchase. Draining an account and incurring over draft charges is on the card holder if it was used as s debit card. Plus, bank keeps your money while investigating fraud and only returns your money if used as a CC at purchase in most cases.
Credit cards are a "credit" because you're using the issuers money on credit to purchase something in the moment and pay back later. Better to tie up their money in an investigation then mine.
Only one of my checking accounts has an "ATM" card with Visa logo. I use at bank ATMs only for cash, otherwise I don't use it.
Instant notifications on my phone for charges are also the best way to keep track of my wife's shinanegins and kids spending!

[MKSixer]

NavyDoc sorry to hear this. The bastards do it because it is low risk and high reward. They typically charge a couple of things at a gas station then try to lay into the card. My wife's identity was stolen about 7 years ago and even 2 years later they tried to purchase a car. Yes. A freaking car. Unreal. The police knew who the theft ring was but did nothing.

Most recently, my daughter's Debit Visa/ATM (still in college) was compromised and used by a person to handle their Uber travel for about 2 weeks. I usually check my accounts on a daily basis and didn't check hers for a while but I won't make that mistake again. We theorize that it was taken when she used it at McDonalds and the person registered it with Uber. Uber was horrible but the bank stepped up and reimbursed her the $176.00 immediately.

I have eliminated using Debit MC/Visa/ATM cards for anything but getting cash and I try to do that only at the issuing bank.

I use AMX for most of my purchases and nearly all of my travel. I have 2 cards that I use for internet only purchases and with those I go through paypal to have an extra buffer. And I have a low credit limit 'burner' card to use in emergency situations. The really great thing (not), is that the banks know my spending pattern and will notify me if anything is out of pattern.

Good luck and I hope that you are indemnified.

Cheers-mk

[MKSixer]

Originally Posted by KingOfJericho

I've noticed many vendors (>25%) are now using the chip technology - no more swiping. I hope this cuts down on it a little bit.

AMEX sent the new cards out about 18 months ago for certain cardholders. I really like the system because it cuts down on the opportunity for fraud. It takes a bit longer to clear each charge but I don't care. I also love when vendors ask for my ID. I thank them for it each and every time. Some people get pissed but it is for our own protection.

[RickFLM4]

While on the topic of credit card fraud and identity theft the other thing I did on someone's recommendation and that I recommend to others is a credit freeze with each of the three credit bureaus. Once frozen no one can pull your credit report so it makes it nearly impossible to get credit in your name, even if they have your personal info. Yes, it costs $10 / credit bureau to unfreeze when you want to apply for credit yourself, but I don't apply for credit often so it's worth it IMO.

[UncleWede]

I just recently got a check for ~$6 from Lifelock.

I once bought 2 surfboards and some cameras, in Hawaii. I can't even remember that trip. . .

Then there were all those gift certificates I bought from little mom-pop gas stations.

[JasonCSU]

Originally Posted by KingOfJericho

My one piece of advice is to ALWAYS pay with a credit card and NEVER with a debit card.

This is what I tell people all the time as well. The funny thing is, it has led to numerous conversations where people have told me credit cards are evil and they will never use one, or they can't control their spending compared to a debit card. It absolutely baffles me why some people refuse to use credit cards to take advantage of their protections and many other benefits. I also don't get why people would spend uncontrollably with one either. Just treat it like a debit card with your usual bills and purchases and pay it in full each month. It's certainly not rocket science, but maybe it is a willpower thing?

[zx10guy]

Originally Posted by JasonCSU

This is what I tell people all the time as well. The funny thing is, it has led to numerous conversations where people have told me credit cards are evil and they will never use one, or they can't control their spending compared to a debit card. It absolutely baffles me why some people refuse to use credit cards to take advantage of their protections and many other benefits. I also don't get why people would spend uncontrollably with one either. Just treat it like a debit card with your usual bills and purchases and pay it in full each month. It's certainly not rocket science, but maybe it is a willpower thing?

Be careful, you'll get the DR folks beating down your door.

[ptbarnacle]

Originally Posted by zx10guy

Be careful, you'll get the DR folks beating down your door.

What are DR folks? Sorry, really don't know.

[zx10guy]

Originally Posted by ptbarnacle

What are DR folks? Sorry, really don't know.

Dave Ramsey

[ptbarnacle]

Originally Posted by zx10guy

Dave Ramsey

I listen to him on the radio when driving around town in the late afternoons. Gets a little repetitive. But, I think the big one is to pay off your balances. He doesn't like credit or credit cards but I heard him say he could live with a listener using them for convenience as long as they maintain a zero balance and have the willpower to do it.

He hates financing cars- "If you can't pay cash for an M car, you can't afford an M car."

Oh well.

[eluded]

Originally Posted by M_Six

It's still a huge hassle changing CC numbers if you pay several bills with it.

Karma, I posted this and my credit card got stolen this week.

[Navy Doc]

Originally Posted by eluded

Karma, I posted this and my credit card got stolen this week.

Sorry to hear that.

[ErkanTR16]

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