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Card fraud how it can happen how the bank finds it
paulinespens
Posts: 253 Forumite
in Credit cards
I see alot of people here mentioning about card fraud so I am going to post some information.
The types of card fraud are
Card Holder Not Present Fraud or Mail Order Fraud
Lost or Stolen Cards Self Explaining
Counterfeit Fraud A cards been made with your number on it
Identity Fraud there is two types to this fraud
1 Applying for credit in your name using your details to yourself but another address.
2 Taking over your bank and credit card accounds by getting hold of your information and getting through security over phone with the card issueer then your details gets changed a new card is issued and maybe a credit limit increase.
Fraudulent Application
Can be similar to Idendity Theft but also a person can put false information on like where they work etc.
ATM and Chip and Pin
1 Account being emptied out using a couterfeit card where your pin has been compromised.
2 ATM being used where someone has kept pin with card
3 Chip and Pin where card and pin have been compromised eg card has been left with a pin number.
And lastly card holder not received.
Card gets posted to you via Royal Mail and you never receive the card.
Ok these are the types of card fraud.
So how can my card details and information be compromised?
Lets look at counterfeit fraud which was one of the main reasons chip and pin was created for.
Your on your dream holiday overseas or in a bar in London you give you card over to a waiter or in a shop. Ther person takes your card to pay and without your knowledge or without you seeing this he has a little device similar to this.
The details off the magnetic strip is copied onto this device and someone has your card details.
A counterfeit card will have your number on it.
It could be a real card with the magetic strip containing your number on it.
It could be a peice of plastic with your card number on it without the magetic strip working so the person in shop will have to key in the card number.
It could be a card with any name on it for another bank egg using a fake Abbey Card with a Lloyds TSB card number on it.
Phishing is away to get hold of personal details.
People going in bins looking for old credit cards old bank statements and all the usual stuff people can put in there bin without shredding it.
A fraudster will call you to phish for information pretend you have won a holiday or they are calling from your bank to try and get your information out of you and getting you to give out personal information out over the phone.
Obtaining a copy of your Birth Certificate from the town hall can cause problems.
Your shopping online and your computers got no firewall and someones put keylogging software on your system so they can get personal information that way.
Using a fake website for making a purchase from.
Online retailer being hacked
Some shops still printing card numbers on a receipt and you throw it away.
Someone going into a shop pretending to be from the bank making modifications to a card machine or even making modifications to the machine.
A dishonest shop employee who has access to this card machine.
Someone on the net making up card numbers. There is a formula to making card numbers and guessing card numbers this can actually be done.
Atm Machines
Check the atm machine your going to use if something don't look right dont use it.
The Lebanese Loop
These are homemade devices used to make you think the ATM machine has swallowed your card. A nice passer by will say to you if your enter your pin number your card will come out it happened to me before and they will look over your shoulder and try and get pin.
They also put mini cameras on the ATM and a skimming device where you insert the card so they can see your pin and get your card details.
Banks have made progress to modify there machines so if you attempt to tamper with it the machine will become out of service.
Here is how an atm machine is tampered with
http://www.snopes.com/fraud/atm/atmcamera.asp
False ATM Machine Front
False Atm Machine front can be found here
It has been known for fraudsters to make a false atm machine where they had gotten card numbers and pins that way.
It can happen family and friends getting hold of your card details.
Cards and pins being intercepted in post as well as creditcard statments with your details on.
What does the bank do?
The banks monitor card spening 24/7.
They have a system in place that looks out for unsual spending patterns or if your card is being used in a type of shop or country where there is alot of fraud. Transaction amount is taken into consideration. Its where and how the card is being used.
Each transaction you make is given a score. A low score its not fraud a high score in a certain range it will cause your transaction to be reffered for a manual authorisation in a shop or declined if its a Mail order transaction.
Fraudsters tend the make the same type of purchases.
Here is some purchases a bank may pick up as suspiscious
Automated fuel pump
They authorise your card for a £1 and take the money off your balance a couple of days laters. No one around a fraudster can see if cards working. If have never used one before this can trigger it off.
Registering a card on a website or using a card on a website
Internet Sites will do a pre authorisation check on your card for £1 or $1 which is something like 50p if this works the fraudsters going shopping.
Cash back in stores
If you do 3-4 cashbacks in a supermarket or a store in a day this is going to ring alarm bells.
Expensive Transactions
Electrical Goods Currency Jewellery if your spending alot this may ring arms bells.
Your cards not been used for a long time
You not used your card for a long time and your buying that engagment ring.
Overseas Transactions
You found that lovely engagement ring in Dubai.
The bank should contact you if they want to verify spending on the card by a phone call or a letter. Make sure all your details are up todate.
If you don't recognise transactions the bank will cancel your card issue with a new one and send you paperwork to say these transactions are not mine. They will invesitgate the fraud and refund you money once they are happy.
Card acceptance problems what to do?
If your making an online transaction make sure your name and adress matches what the bank holds as your billing address and if you have entered them all correctly.
If your card gets declined then give them a call. Keep the number of the fraud deparment handy so you can speak to a human being. Get them too look at account to see what the problem is. Its a pain yes but then you hopefully you won't get any other problems.
My cards been declined but I know I have funds?
Only time a card will be declined is if its been reported lost or stolen or has a block on such as non payment.
What happens is when card is swiped there will be a message advising the shop to call the authorisation centre as a security check is needed on the card. It could be for number of reasons.
Theres been an incident on your card
Theres funny spending
Its a random check to make sure it is yourself making the transaction.
Your going to feel embarssed if this happens of if its happened and its happened to me before too.
If the shop assistant says your cards been declined it means shes not doing her job correctly she is not calling the authorisation centre as requested. So when you go to use your card again the banks system thinks it stolen.
If you have any card problems allways call the number at the back of card or even go onto saynoto0870.com to get a geographical number.
What can I do?
Don't give out personal stuff over phone unless you know who your talking too.
Shred information.
Watch who you give your card details too.
Check the webiste is genuine look for feed back from this retailer.
Look at cashmachines when you use them.
Don't let card out your site.
This information is the same for no matter what country you use your card in.
The types of card fraud are
Card Holder Not Present Fraud or Mail Order Fraud
Lost or Stolen Cards Self Explaining
Counterfeit Fraud A cards been made with your number on it
Identity Fraud there is two types to this fraud
1 Applying for credit in your name using your details to yourself but another address.
2 Taking over your bank and credit card accounds by getting hold of your information and getting through security over phone with the card issueer then your details gets changed a new card is issued and maybe a credit limit increase.
Fraudulent Application
Can be similar to Idendity Theft but also a person can put false information on like where they work etc.
ATM and Chip and Pin
1 Account being emptied out using a couterfeit card where your pin has been compromised.
2 ATM being used where someone has kept pin with card
3 Chip and Pin where card and pin have been compromised eg card has been left with a pin number.
And lastly card holder not received.
Card gets posted to you via Royal Mail and you never receive the card.
Ok these are the types of card fraud.
So how can my card details and information be compromised?
Lets look at counterfeit fraud which was one of the main reasons chip and pin was created for.
Your on your dream holiday overseas or in a bar in London you give you card over to a waiter or in a shop. Ther person takes your card to pay and without your knowledge or without you seeing this he has a little device similar to this.
The details off the magnetic strip is copied onto this device and someone has your card details.
A counterfeit card will have your number on it.
It could be a real card with the magetic strip containing your number on it.
It could be a peice of plastic with your card number on it without the magetic strip working so the person in shop will have to key in the card number.
It could be a card with any name on it for another bank egg using a fake Abbey Card with a Lloyds TSB card number on it.
Phishing is away to get hold of personal details.
People going in bins looking for old credit cards old bank statements and all the usual stuff people can put in there bin without shredding it.
A fraudster will call you to phish for information pretend you have won a holiday or they are calling from your bank to try and get your information out of you and getting you to give out personal information out over the phone.
Obtaining a copy of your Birth Certificate from the town hall can cause problems.
Your shopping online and your computers got no firewall and someones put keylogging software on your system so they can get personal information that way.
Using a fake website for making a purchase from.
Online retailer being hacked
Some shops still printing card numbers on a receipt and you throw it away.
Someone going into a shop pretending to be from the bank making modifications to a card machine or even making modifications to the machine.
A dishonest shop employee who has access to this card machine.
Someone on the net making up card numbers. There is a formula to making card numbers and guessing card numbers this can actually be done.
Atm Machines
Check the atm machine your going to use if something don't look right dont use it.
The Lebanese Loop
These are homemade devices used to make you think the ATM machine has swallowed your card. A nice passer by will say to you if your enter your pin number your card will come out it happened to me before and they will look over your shoulder and try and get pin.
They also put mini cameras on the ATM and a skimming device where you insert the card so they can see your pin and get your card details.
Banks have made progress to modify there machines so if you attempt to tamper with it the machine will become out of service.
Here is how an atm machine is tampered with
http://www.snopes.com/fraud/atm/atmcamera.asp
False ATM Machine Front
False Atm Machine front can be found here
It has been known for fraudsters to make a false atm machine where they had gotten card numbers and pins that way.
It can happen family and friends getting hold of your card details.
Cards and pins being intercepted in post as well as creditcard statments with your details on.
What does the bank do?
The banks monitor card spening 24/7.
They have a system in place that looks out for unsual spending patterns or if your card is being used in a type of shop or country where there is alot of fraud. Transaction amount is taken into consideration. Its where and how the card is being used.
Each transaction you make is given a score. A low score its not fraud a high score in a certain range it will cause your transaction to be reffered for a manual authorisation in a shop or declined if its a Mail order transaction.
Fraudsters tend the make the same type of purchases.
Here is some purchases a bank may pick up as suspiscious
Automated fuel pump
They authorise your card for a £1 and take the money off your balance a couple of days laters. No one around a fraudster can see if cards working. If have never used one before this can trigger it off.
Registering a card on a website or using a card on a website
Internet Sites will do a pre authorisation check on your card for £1 or $1 which is something like 50p if this works the fraudsters going shopping.
Cash back in stores
If you do 3-4 cashbacks in a supermarket or a store in a day this is going to ring alarm bells.
Expensive Transactions
Electrical Goods Currency Jewellery if your spending alot this may ring arms bells.
Your cards not been used for a long time
You not used your card for a long time and your buying that engagment ring.
Overseas Transactions
You found that lovely engagement ring in Dubai.
The bank should contact you if they want to verify spending on the card by a phone call or a letter. Make sure all your details are up todate.
If you don't recognise transactions the bank will cancel your card issue with a new one and send you paperwork to say these transactions are not mine. They will invesitgate the fraud and refund you money once they are happy.
Card acceptance problems what to do?
If your making an online transaction make sure your name and adress matches what the bank holds as your billing address and if you have entered them all correctly.
If your card gets declined then give them a call. Keep the number of the fraud deparment handy so you can speak to a human being. Get them too look at account to see what the problem is. Its a pain yes but then you hopefully you won't get any other problems.
My cards been declined but I know I have funds?
Only time a card will be declined is if its been reported lost or stolen or has a block on such as non payment.
What happens is when card is swiped there will be a message advising the shop to call the authorisation centre as a security check is needed on the card. It could be for number of reasons.
Theres been an incident on your card
Theres funny spending
Its a random check to make sure it is yourself making the transaction.
Your going to feel embarssed if this happens of if its happened and its happened to me before too.
If the shop assistant says your cards been declined it means shes not doing her job correctly she is not calling the authorisation centre as requested. So when you go to use your card again the banks system thinks it stolen.
If you have any card problems allways call the number at the back of card or even go onto saynoto0870.com to get a geographical number.
What can I do?
Don't give out personal stuff over phone unless you know who your talking too.
Shred information.
Watch who you give your card details too.
Check the webiste is genuine look for feed back from this retailer.
Look at cashmachines when you use them.
Don't let card out your site.
This information is the same for no matter what country you use your card in.
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