Nobody must read this, since there are no comments, so Ill write to myself. In April, I got a stray call early aft from BOA saying did you just use your credit card at Old Navy. No, I said and checked my wallet. 3 credit cards were missing. It took longer than it should have to report them stolen to the 2 other cos because they had lousy phone systems, and of course I am out nothing, just a minor inconvenience. Somehow I had lost 3 credit cards from my wallet. In 1 1/2 hours, my cards had been used to the tune of $6000 at Best Buy (twice), Office Max and Old Navy. Had any of these stores asked to check ID, none of the sales would have been put through (I didnt lose my wallet, I still had all my ID). Almost all the purchases were substantial. Had the credit card cos coded in their approval that ID must be checked and recorded for anything over $500 and that use of the card would be shut off unless ID was provided, there would have been virtually no loss to the credit card cos. Stores apparently dont care because they are not out anything. Electronically, using approval code process, this would be easy to do. CC card co rep said stores wouldnt like this, it would hold up the line, but WHAT IDIOTS THEY ARE. IT WOULD SAVE MILLIONS IF NOT BILLIONS OF FRAUDULANT SALES EACH YEAR. I am a merchant. I would have no problem with this at all. The benefits, compared to the inconvenience, are immeasurably larger. I relaize that there are always other ways for credit card fraud to take place. But this is an easy way to end a lot of it. My $6000 in losses resulted in great difficulty in even getting a police agency to take the report (Dont report a credit card theft in Syracuse, NY. They dont care.) 3 weeks or so after getting a police agency to take the report, a detective called me saying they had good video atboth Best Buy and Old Navy. Never got back to me again or showed me pictures, as promised. Why should I care? Im not out anything. This is another example of how both public and private parts of society make it easy for criminals to keep on taking advantage of good people, and screw up all the good rules of society by not holding people accountable. Maybe credit card cos should reward police agencies of proper investigation of financial crimes like this and give them an incentive to investigate. Millions maybe billions of dollars in fraud prevented. Easily! Boy, we have a screwed up society, dont we? When banks do nothing to protect themselves from large losses, I guess just figuring they can raise their interest rates and fees on everyone else. What is preventing credit card cos from fixing their broken system? As I layman, I can figure out how to save a bundle from CC fraud. Why cant their high paid executives figure out how to put such a systm into place?
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easy way to save millions of dollars in credit card fraud
(7 posts)-
Posted 2 years ago #
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Thanks for stopping by and sharing your experience with credit card fraud and your ideas. You make some very valid points, it seems to me. As a matter of fact, all the major credit card companies actually prohibit merchants from requiring ID from customers. The merchant can ask for ID, but they can't require it. I imagine credit card companies would have four concerns with your proposal.
First, many of their customers would not want to provide an ID to a sales clerk, since this exposes their sensitive personal information along with their credit card information. Some percentage of those customers will just stop using their card as a result, in favor of cash or a competitor's card (one that doesn't require ID).
Second, there might actually be an increase in fraud due to waiters, sales clerks, etc., misusing or selling the personal information from customers.
Third, presenting a credit card is supposed to be (at least in theory) a status thing. The sales clerk is supposed to think "Ah, this guy with the Titanium Plus Luxury Rewards American Express Card must be a big cheese. I'll bow deeply from the waist to show my respect." That moment is certainly diminished by the clerk instead replying, "I need to see some ID, mister." In short, being required to show ID diminishes the card as a status symbol.
Fourth, if the cutoff is $500, thieves will simply make multiple purchases just under that amount to evade the rule. A better solution might be to randomize the amount somewhat, so that thieves can't predict what will trigger an ID check.
With all that being said, requiring ID for large purchases seems like a reasonable compromise. At the very least it should be tested. Good thought.
Posted 2 years ago # -
Okay, here is the deal. Most people do not check the little amounts. That 1.95-, 9.95- etc. just look like another nusance. If we were to check all of our bills and follow through we will see that sometimes the electric and gas companies bill off of an estimate. It is good to know what you need to honestly pay on a bill.
Credit card companies do not make money when people use their card and pay their bill. If it takes some credit card fraud to build up the debt for some credit card companies this is called a expense of doing business, a tax deduction, or collateral damage. What credit card companies need to make money is for someone to run up their cards. They do not care really who runs them up, just that they spend to the limit, pay the minimum, and get a new limit as a reward. With the Sears card my dad did the math and found that making the minimum payments it would take him 25 years to pay off just over 1,000.-.Posted 2 years ago # -
Posted 2 years ago #
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Posted 2 years ago # -
Posted 2 years ago #
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They don't care because they get paid by the insurance company which we pay for. It would be very easy to just require a pin number like they do on debit cards....no code no charge...simple.
Posted 1 year ago #