Credit Card Quick

Michaels Stores Customers Get Scammed Over Skimming

Identity Theft News

The latest credit card scam has hit the media, and it involves the country’s crafters. Customers of Michaels Stores have fallen victim to one of today’s most prevalent credit card crimes: skimming.

What is Skimming?

Skimming is the process of placing a fake credit card reader over a legitimate one. It works like this: a credit card thief places the fraudulent device over a legitimate one, such as those found at retailers nationwide, and sits back while customer after customer swipes their card into the device. After a day or two, the thief then removes the skimming device and – voila – has hundreds, maybe even thousands, of credit card numbers.

The latest skimming fraud took place in Michaels Stores across the country, including two in Utah. The Irving, Texas-based company confirmed that their credit/debit card readers in several stores have been compromised by skimming devices. Although Michaels Stores claims that less than 90 pin pads were affected, the store has removed all devices – there’s more than 7,000 – from their stores due to what they call an “abundance of caution.”

How They do It

Many criminals have managed to carry off this scam by either distracting cashiers or posing as repairmen. Many times, thieves simply replace the legitimate card readers with processing machines embedded with skimmers.

Although avoiding this type of scam is close to impossible, particularly if the thief actually replaces the real card reader with a fraudulent one, many times the thieves place a small skimming device over the legitimate one, making identifying it a bit easier.

The best thing you can do to avoid falling victim to a skimming scam is to never use a card reader at a retailer or location at which you are not familiar; to not use an ATM machine at a location you are not familiar; and to never use a card reader that looks suspect.

Finally, it always pays to look closely at your credit card statement each month and your bank account each month if you use a debit card. Immediately reporting fraudulent activity is the best way to avoid a considerable amount of damage to your bank accounts or credit score.

International Credit Card Scam Busted by the Federal Trade Commission

Card Security

The Federal Trade Commission has once again thwarted a multi-million-dollar, international credit card scam.

This long-running international credit card scam was estimated to have net more than $10 million; but the interesting part is that credit card customers were charged no more than $10 in fake credit card charges, thereby allowing the thieves to get away with the scam for such a long period of time.

For four years the perpetrators charged unsuspecting credit card customers small amounts on their credit card and debit cards. It is still unclear how the thieves got the credit card customers, but the FTC thinks that they may have even gone as far as done credit checks on their victims to make sure the credit cards were legitimate.

This scam, along with the countless scams being busted nearly every day by the FTC, is a clear example of the extent to which credit card thieves will go to steal money. It is also a good time to alert credit card customers to these credit card scams so that we can all be more aware of our credit cards and how we can protect ourselves:

• Check your statement carefully, each and every month. Many of us get into the habit of paying our credit card bills each month and we don’t even take the time to really examine our statement. However, this case is a perfect example of ripping credit card customers off because they simply didn’t take the time to carefully read the charges on their statement.
• Understand credit card scams so that you can be better equipped to fight them. Credit card thieves, unfortunately, are staying one step ahead of the FTC and other cyber-crime-fighting organizations, so it is best to understand the lengths at which thieves will go to bilk people out of millions of dollars.
• Keep your receipts so you can compare them with your credit card statement each month. You may be charged a few dollars extra by a company and not even be aware of it unless you check the amount carefully against your receipt.

Beware of Credit Card Scammers Asking for your Security Code

Identity Theft

We all know to be aware of credit card scammers, but sometimes a new scam comes along that simply throws us for a loop – and scammers are counting on it.

Many of us already know that retailers are now using the security codes on the back our credit cards as a way to curb credit card fraud. For example, the last time you made a credit card purchase over the phone or online the retailer likely asked for your credit card’s three-digit security code, as well as the card’s number and expiration date.

This is done to prevent credit card thieves from placing unauthorized charges on your credit card account without your knowledge. In other words, having a credit card holder’s credit card numbers is now simply not enough for scammers; they must also have the card’s security code to break into your account.

The Newest Scam and how it Works

Credit card scammers have now found a new way to fool credit card customers into giving up their three-digit security code (surprise, surprise), so here’s what you need to know about this scam so it doesn’t happen to you.

The scam goes something like this: a credit card thief (who is already in possession of your credit card number) calls you, claiming to be from your credit card company; probably from the security or fraud division of your credit card company. The caller then recites your address to ensure that you are the cardholder, and lets you know that your card may have been stolen, or that unauthorized charges were placed on your account.

The caller then asks you to verify that you have the card in your possession. And, of course, the only way to do this is by reciting your security code to the caller. Bingo – you’ve just been scammed.

It is important to understand that, at no time, will your credit card company ask you to reveal any private information, including your security code. If you have any doubt about the legitimacy of a call, simply hang up and contact the credit card company directly.

Newest Credit Card Scam Targeted at Veterans

Identity Theft News

We all must be aware and diligent when it comes to protecting our credit, as credit card scammers seem to be keeping up with the best efforts of industry fraud experts.

It is important to note that no one – and I mean no one – is safe when it comes to credit card scammers.

Case in point: the Department of Veteran Affairs recently sent out a warning to all veterans, as the latest credit card scam appears to be targeting this group.

The scam against veterans works when a scammer calls a veteran, posing to be a VA worker. The scammer then proceeds to ask for the veteran’s credit card information so that he/she can update the veteran’s prescription information. The scammer often informs the veteran that the VA has changed the process of dispensing prescriptions, so they need a credit card to do so.

Veterans need to understand that the VA will NEVER ask them to disclose their personal or financial information over the phone.

Although this scam is not new, the Department of Veteran Affairs has noticed a sharp increase in this type of scam as of late. And credit card scams are just one of countless scams targeted at veterans at any give time. Other scams targeting both active military and veterans include life insurance scams, payday loan scams, car title scams, repair scams and loads of fraudulent discounts.

How to Protect yourself from Credit Card Scammers:

• Never reveal personal or financial information to ANYONE unless you have initiated the call.
• If you are ever suspicious of a call, simply hang up and contact the company directly to address the validity of the call.
• Never open or respond to unsolicited emails, even if they claim to be from a trusted source. Banks, credit card companies and the VA will never ask for your personal information via email.
• Only do business with trusted sources.

How to Protect your Credit Card from Credit Card Thieves

Card Security

On any given day there seems to be a news story or two about credit card thefts and scams. We all know that protecting our credit cards and personal information has become very important, yet few of us really know what we need to do to fully protect ourselves.

What can you do to prevent yourself from becoming yet another credit card theft victim?

1. Never leave your credit cards unattended at any time. Many studies have found that the highest incidences of credit card theft occur at an individual’s place of employment. It is therefore important to not only keep your purse or wallet with you at all times (or locked up), but to also avoid placing your credit card in your desk or other area where others may see it.
2. Immediately report a lost credit card. Most of us would report our card to our credit card company if it were stolen, but not many of us would think to report a lost credit card. The time it takes to search for your misplaced credit card is all the time a credit card thief needs to obtain your credit card information.
3. Always check and double check your monthly credit card statement. Many of us who make multiple purchases on our credit cards on any given month do not take the time to study our credit card statements and the purchases that appear on them – and credit card thieves are counting on it. Did you know that many credit card thieves will make sporadic purchases in the hopes that the credit card holder will not notice the charges?  Remember that next time you receive your monthly credit card statement!
4. Never give your credit card information over the phone unless you initiate the phone call. If you receive a phone call or email from your credit card company asking to verify your personal information, do not give it out! Instead, immediately contact your credit card company to report the communication.
5. Don’t keep the pin number of your credit card in the same place as your credit card. This is simply an invitation for a credit card thief to obtain cash from your credit card!