debit card( checking account) fraud?

[Rosiv]

After hearing all these stories on how people lose thousands via debit card (checking account) fraud, I wondered a few things:

1) have any of the members of the escapist been a victim of this type of fraud?

2) what do you think are the major causes of being a victim of fraud?
(Ex: online banking with unsecure internet/public internet?)

3) solutions for avoiding fraud


For me to start off, I guess for 1) I havenot been a victim, 2) I think just using my debit card anywhere makes me vunerable. 3) I don't really have any solution to avoiding this.

If I don't post regularly to this, its because I am busy with finals. Thanks

 

[Zontar]

Well in my experience the breakdown goes like this:

1) Never been the victim of fraud as of yet

2) Most fraud to my knowledge stems from either stupidity on the part of the defrauded for falling for a scam, or simple bad luck

3) Act smart when, don't give the information out at random, and hope you have better luck then the people who are picked at random by criminals

That's about it. It's a reality of life to be frank, though with everything being digitized it's becoming easier and easier to prove that a transaction was fraudulent so it's becoming more and more of an issue for banks and credit companies then it is of being one for consumers.

 

[Legion]

1) This week in fact. Someone tried using my card for a relatively small amount of money on a company in America. My bank blocked the payment and contacted me, cancelled my card and sent me a new one.

2) I am not sure really. I've been trying to think of how they might of gotten the details and insecure net/websites is the only thing I can come up with. I normally only pay via Paypal and the few websites I have used my actual card details have all been legitimate websites I have used for years.

But as for the major causes, I think people using illegitimate sites is probably a lot of it.

3) The only way I can think of regarding the account holder being in control is to not buy things online and only use cash. Every way involving buying things online has *some* risk due to your card details being somewhere on the internet.

 

[Queen Michael]

1) Yes. Somebody used about $40 of my money to buy things over Xbox Live.

2) Trusting shady porn sites.

3) Only buy things from the most trusted online retailers.

 

[Scarim Coral]

1. Somebody got hold of my card number which was my own stupid fault via plishing (I was using paypal alot and then I get an email claiming to be paypal and I fall for it). I was fornatuate that my bank stop those transtation (was a cinema ticket but in euro which I never use euro and some auto repair thing) and I got a new card.

2. Some people are not computer swavy like however the mouse over the link for the URL and are too trusting (a phone call claiming to be the bank and asked for details which they never do).

3. People should be more caution online and question the caller when asked for details.

 

[tippy2k2]

1. The only time I've ever had fraud or whatever you'd go with is when someone got my Xbox Live account somehow and took the $20 or so I had in Live money. I do not have my credit card on there (see #3 below) so the damage was minimal.

2. Stupidity and shitty luck. The dumber you are about it (not shredding financial documents, giving your info to whoever asks for it without hesitation, constantly losing your wallet, etc) the more likely you'll have that bad luck but ultimately, there are too many hands with access to your information for you to be able to prevent it all (see Live, Xbox from #1)

3. Don't save your cards on websites. This always baffles me that people do it (you wouldn't leave your credit card at the Pizza Hut you go to all the time, right? So why is PizzaHut.com all of a sudden a good place to just leave your credit card?). The only places I will save my card to are places that FORCE you to do it like Netflix.

This one might also sound backwards but get a credit card and use that. Credit cards have more protections (plus rewards! I get 1% cash back on everything but because I pay it back every month, I've received hundreds of dollars back while paying zero dollars in interest) put on them that allow you to dispute charges and make it easier to get them reversed. A mistake with a debit card can make you lose your entire savings; a mistake with a credit card will be a pain in the ass but is reversible.

 

[KyuubiNoKitsune-Hime]

Well this is interesting so here's mine:

1) Never had a misuse of my card of checking account.

2) Really it's a danger because hackers intrude every database anymore, it usually takes months, or years to detect. Trusting shady websites with one's credit/debit card usually does it. Using unencrypted or WEP wifi, seriously WPA minimum and it had better be WPA2-AES. Also not having an extension like "Certificate Patrol" in your browser, so you can be sure the SSL certificate is trustworthy and current.

3) The easiest solution is to use prepaid debit cards, it might cost you a few bucks, but the security from having a card you use only once is worth it. Also if you're on US SSI, SSDI, and/or Social Security retirement, get a "Direct Express" card, because it's an account owned by the us Treasury. Then if you have card fraud, all you do is report the particular fraudulent charge, you'll get the money back within 24 hours, and the Treasury starts an investigation to see where that charge came from.

3. Don't save your cards on websites. This always baffles me that people do it (you wouldn't leave your credit card at the Pizza Hut you go to all the time, right? So why is PizzaHut.com all of a sudden a good place to just leave your credit card?). The only places I will save my card to are places that FORCE you to do it like Netflix.

This is a common misconception, any place you use a debit card, or credit card, stores all of your card's information in their database anymore. You literally can't get away from having your card information stored.

 

[tippy2k2]

3. Don't save your cards on websites. This always baffles me that people do it (you wouldn't leave your credit card at the Pizza Hut you go to all the time, right? So why is PizzaHut.com all of a sudden a good place to just leave your credit card?). The only places I will save my card to are places that FORCE you to do it like Netflix.

This is a common misconception, any place you use a debit card, or credit card, stores all of your card's information in their database anymore. You literally can't get away from having your card information stored.

You are correct that the data base stores it so you're still vulnerable on the "X got hacked and my credit card is now stolen" but I'm more referring to the much easier setup where someone just gets your user name and password. If I save my credit card on Walmart.com and someone gets into my account, they now have access to the credit card. If I don't save my credit card on Walmart.com and they get access to my account, the most they're getting is my personal information that they could get out of any phone book.

Like with my example I gave about Xbox Live; the only compromise was my account. My credit card was not on there so ALL they could take was whatever I had on Xbox Live. Had my credit card been on there, they could have loaded up on Live Points and really gone nuts with my money

 

[KyuubiNoKitsune-Hime]

3. Don't save your cards on websites. This always baffles me that people do it (you wouldn't leave your credit card at the Pizza Hut you go to all the time, right? So why is PizzaHut.com all of a sudden a good place to just leave your credit card?). The only places I will save my card to are places that FORCE you to do it like Netflix.

This is a common misconception, any place you use a debit card, or credit card, stores all of your card's information in their database anymore. You literally can't get away from having your card information stored.

You are correct that the data base stores it so you're still vulnerable on the "X got hacked and my credit card is now stolen" but I'm more referring to the much easier setup where someone just gets your user name and password. If I save my credit card on Walmart.com and someone gets into my account, they now have access to the credit card. If I don't save my credit card on Walmart.com and they get access to my account, the most they're getting is my personal information that they could get out of any phone book.

Like with my example I gave about Xbox Live; the only compromise was my account. My credit card was not on there so ALL they could take was whatever I had on Xbox Live. Had my credit card been on there, they could have loaded up on Live Points and really gone nuts with my money

The databases are actually much easier to crack than individual accounts, also cracking a database of a large retailer gives not only credit card information, but also account login and password information if it's stored. "Script kiddies" usually are the ones who crack individual accounts, often times in like Steam and XBox Live it's to make you look like an idiot. The databases are still where everything is, cracking individual accounts is worthless, because the hackers generally don't use the card information themselves. They sell the card information on black markets, that way it's neigh impossible to catch the hackers, even if they catch the identity thieves who use the information for personal gain.

This is why I default to using prepaid cards and things like my Google Wallet which I strictly control, only putting what I need on account to make an online purchase. If someone steals those card numbers, they'll get nothing, because I keep the accounts empty until I use it to pay for something, if I keep an active account at all.

 

[Artina89]

1)So far I have not been a victim of card fraud

2)I would imagine using your card indiscriminately would lead to your details being more likely to be released I guess? I can't really say.

3) I very rarely use my card to make purchases. I tend to go to ATMs to get whatever money I need for the week, and if I need to make any online purchases, I only use trusted sites (and with amazon I use giftcards as opposed to entering my card details). But I understand that it is a rather convoluted way of going about things, but it works for me.

 

[Michel Henzel]

Nope never. They would need access to my online bank account, my card, my pincode, my authenticating device and my mobile phone to be able to transfer money from my account.

 

[Kotaro]

Once, though it wasn't exactly a card.
A couple years ago, someone managed to get into my PayPal account and steal $500 from me... which was money I was going to use to pay my rent that month. PayPal quickly noticed that this particular activity was unusual, however, and put a temporary lock on my account. I requested they look into it and reimburse me, and was notified it would take a few days. In the meantime, I called my landlord and explained the situation and that my check would be a few days late. Thankfully, he understood.
In the end, PayPal refunded my money and I was able to pay my rent. And I changed my password, of course. Never had anything like this happen again to me, since.

 

[CeeBod]

1. Yes - I had about ?800 (about $1200) spent on clothes shopping whilst I was out of the country, a few years ago. I think my card may even have been copied at a cash machine at the airport given the timing (they started stealing whilst I was still in the air!). Pretty sure I never got most of it back either, as I needed to go in person to my local UK police station to get it properly reported, and I was about 5,000miles away - which would have cost me about the same as I lost in flights to try to get it back! I didn't even know it had happened until nearly a month after the fact too.

2. Bad Luck and bad security - since it happened to me, it's now set up that any time any transaction out of the ordinary occurs, my bank call or text my phone asking for confirmation that its really me. It makes big transactions in person a pain in the arse as my card is always refused first time until the bank call and check, but I prefer that to any possible repeat.

3. As per 2 - talk to your bank and ask them about what opt-in security procedures they can offer.

 

[BloatedGuppy]

1) have any of the members of the escapist been a victim of this type of fraud?

I had a newly issued credit card intercepted in the mail and used to ring up some fraudulent charges many moons ago. They were reversed and a new card was issued.

2) what do you think are the major causes of being a victim of fraud?
(Ex: online banking with unsecure internet/public internet?)

Most prominently entering banking information into unsecure websites, and/or using debit machines that have been tampered with. That latter has arisen a few times over the years with friends...they've had their cards frozen due to using a suspect machine.

3) solutions for avoiding fraud

Simply practicing good security hygiene. Aside from that, be lucky.

 

[mysecondlife]

I closed my checking account long time ago but just today, I had fraudulent charges on my credit card when a highbrand sunglass came in the mail today that no one in my family ordered.

I check my Amazon order history to see that the sunglasses is not found in there, nor have I received automated email confirming my purchase. I check my credit card account to see that there has been a $500 or so purchases made yesterday under pending charges. I notified the credit card company and now its under monitor and I won't be responsible for the charges should that charge go through.

I tried to think what could have caused it but I honestly have no idea. I'm also assuming that the mysterious sunglasses is the one that cost my account $500 dollars but that may not be the case. Also why order it from Amazon and have it come to me?
Honestly I can only hope that its a bad luck because I can't remember what I did that is widely considered careless.

Solution: I don't know.. I'm in the process of using a random generated string of text as my password and hope it doesn't happen again.

 

[Addendum_Forthcoming]

Um... I've been embezzled from with a corporate account if that counts? Never been fraudulently affected directly through my own credit card. I once bought something online and turned out the seller wasn't planning to ship the goods so I talked to my bank directly. Assuming that the merchant still has the principle receiving account running, banks are required to assist in monies recovery if there is evidence of fraud. Takes about two months, though. Spent a total of four and a half hours trying to recover 150USD....

But it's the principle of the matter, damnit. If enough people did chargebacks when confronted with online fraud, more of them would be out of business. Though I also blame financial instiyutions worldwide to aiding the problem. Many less scrupulous banks simply let many frauds transfer the money out of accounts into the same bank and close the merchant account. Bank then claims it can't do anymore. Thing is, spend enough time transferring funds about the place, you're going to get burned everynow and again. Happens everywhere. There is no 'safe enough' because the ease of transferring money is essential to making it.

 

[FPLOON]

1. I was my own victim of fraud... but, then again, it was during a time where I thought "overdraft protection" covered Paypal...
2. The lottery... metaphorically speaking...
3. Use sentences as passwords? Oh wait... That's for password protection and is barely relevant to fraud in general...

Other than that, I did go through two checking accounts with one on the verge of being compromised by a potential money scam in the form of one of those "make money the lazy way"-type scams... and the other was embarrassingly connected back to my answer for #1...

 

[FalloutJack]

{1} Not I.

{2} I'll go with site unsound and buyer not bewaring enough for 400, Alex.

{3} Paying attention, keeping an eye on transactions online via your bank account, and paying attention.

 

[LongAndShort]

Fuck mate, I was a bank teller for four and a half years. Never was defrauded myself, but I've seen it happen more times than I can count.

Worst shit was crims messing with ATMs and debit machines, simply 'cause it would affect dozens to hundreds to thousands of people, no matter how careful they are (it becomes simple luck). Attach a card skimmer or even replace the entire device with one of their own. Banks are pretty good at filling in the gaps, but I think the most apt saying is that if you build a better shield the other guy will just build a better spear.

The real serious fraud, where someone would lose thousands upon thousands, tended to involve some bastard preying on people who were older or didn't speak a lot of English. Essentially someone who could be convinced to hand over their information over the phone (like Grandpa SImpson). Some people were fucking clever about it (there was one poor older guy that they'd moved a whole bunch of money around on and it took me ten minutes to work out which account they'd taken the money from and another half hour to work out how much they'd taken). I was never concerned about somebody hacking into my account, but I was always suspicious whenever someone "from my bank" called.