**SCAM ALERT**

[ajzepp]

So I'm looking over my online statement the other night and I see a $25 deduction for something called "AIDS FDN HOUSTON". I called my bank immediately and told them about it, and they set up an investigation. The next day I saw that there was now a phone number listed so I gave it a call to find out wtf. The number was to the Los Angeles chapter of the make a wish organization. I spoke with their accounting supervisor and he told me that this was a known scam and that I needed to immediately contact my bank (which I had already done). According to this guy, this is a scam that is quite prevalent and it's picking up momentum. I don't use credit cards, and I haven't allowed my debit card out of my sight since it was issued to me. These folks obtained my info from somewhere, so just keep an eye out for any sort of shenanigans.

[Jim in Anchorage]

So I'm looking over my online statement the other night and I see a $25 deduction for something called "AIDS FDN HOUSTON". I called my bank immediately and told them about it, and they set up an investigation. The next day I saw that there was now a phone number listed so I gave it a call to find out wtf. The number was to the Los Angeles chapter of the make a wish organization. I spoke with their accounting supervisor and he told me that this was a known scam and that I needed to immediately contact my bank (which I had already done). According to this guy, this is a scam that is quite prevalent and it's picking up momentum. I don't use credit cards, and I haven't allowed my debit card out of my sight since it was issued to me. These folks obtained my info from somewhere, so just keep an eye out for any sort of shenanigans.

Checking?

[ajzepp]

Checking?

 

Yes sir. The charge on my acct was made through my debit card, so somehow someone was able to obtain that info, including the security code on back.

[Jim in Anchorage]

Yes sir. The charge on my acct was made through my debit card, so somehow someone was able to obtain that info, including the security code on back.

Wow. Surprised they didn't clean the account out, instead of just $25.

[ajzepp]

Wow. Surprised they didn't clean the account out, instead of just $25.

 

Me too...that would have been a mess. I have to give Bank of America credit...they already credited back the amt and a new card is on the way. I'm glad this wasn't worse than it was

Edited October 29, 2010 by ajzepp

[Jim in Anchorage]

Me too...that would have been a mess. I have to give Bank of America credit...they already credited back the amt and a new card is on the way. I'm glad this wasn't worse than it was

One more reason I like on line bill pay[NOT auto pay]. It forces you to look at your account every time you pay a bill increasing the chance of detecting robbery as soon as it happens. Also no chance of bad checks if someone cleans you out-you're looking right at the balance as you pay the bill.

[Fezmid]

Yes sir. The charge on my acct was made through my debit card, so somehow someone was able to obtain that info, including the security code on back.

 

Yet another reason to NEVER EVER EVER USE A DEBIT CARD!!!!!

 

Nothing good can happen from a debit card. Use only CREDIT CARDS and pay them off in full each month. As you noted, it could've been really bad if they had taken more than $25 out -- could've bounced a mortgage payment, for example.

 

I've preached that message for years here, and some people call me paranoid. That''s their right, but all I know is that if someone steals my number, they're not actually touching my bank account.

[shrader]

Wow. Surprised they didn't clean the account out, instead of just $25.

 

I'd imagine that a lot of people can easily miss a $25 charge. If you get enough of those that go uncontested, you'll be making a good amount of money from your scam. That and you know that you can probably go back to that account again in the future.

 

This thread reminded me of an email I got last week. It was an updated version of one of those ridiculous Nigerian prince scams. This time it was some woman in europe who was dying of breast cancer. It had some of the worst english I've ever seen and then halfway through, the cancer suddenly switched from the breast to some other part of the body. Absolutely hilarious.

[BB27]

Pretty common scam. Not going to go into how they get your information, but it usually is from accessing the banks records, Not yours specifically. Your bank might have had a breach and doesn't know it, or doesn't want to admit it.

 

They hit you for a small amount, because they hope you won't notice, and the scam can continue. They hit 1000's of accounts, so they get tons of money.

 

Report it to the FBI, they might have 100's of these going on at the same time, and one agent is working on it. They might also tell you they don't care, depends on the office you get.

[Albany,n.y.]

Yet another reason to NEVER EVER EVER USE A DEBIT CARD!!!!!

 

Nothing good can happen from a debit card. Use only CREDIT CARDS and pay them off in full each month. As you noted, it could've been really bad if they had taken more than $25 out -- could've bounced a mortgage payment, for example.

 

I've preached that message for years here, and some people call me paranoid. That''s their right, but all I know is that if someone steals my number, they're not actually touching my bank account.

I always use debit cards, have for years & never had anything happen. I don't use it in stores, because I pay cash,except if it's something expensive. My last computer purchase I put on a debit card. I know what's in my checking account at all times, so I'm not worried about anything bouncing from fraud that couldn't be straightened out just as easily as with a credit card. There's nothing that would bounce that I couldn't straighten out in a day or 2.

[Fezmid]

I always use debit cards, have for years & never had anything happen. I don't use it in stores, because I pay cash,except if it's something expensive. My last computer purchase I put on a debit card. I know what's in my checking account at all times, so I'm not worried about anything bouncing from fraud that couldn't be straightened out just as easily as with a credit card. There's nothing that would bounce that I couldn't straighten out in a day or 2.

 

Just because you've done it for years doesn't mean it's safe. That's like someone saying, "I've never worn a seatbelt and have never been injured while driving."

 

Imagine your payment is going to your mortgage company. An hour before that, scammers clean out your account. Now your mortgage payment bounces, which is reflected on your credit report. In addition, banks are under no obligation to refund your money, although they usually do.

 

It's just silly not to use credit if you have it available to you.

[thebug]

Just because you've done it for years doesn't mean it's safe. That's like someone saying, "I've never worn a seatbelt and have never been injured while driving."

 

Imagine your payment is going to your mortgage company. An hour before that, scammers clean out your account. Now your mortgage payment bounces, which is reflected on your credit report. In addition, banks are under no obligation to refund your money, although they usually do.

 

It's just silly not to use credit if you have it available to you.

 

And you build up a bunch of air-miles at the same time.

[Philly McButterpants]

Yet another reason to NEVER EVER EVER USE A DEBIT CARD!!!!!

 

Nothing good can happen from a debit card. Use only CREDIT CARDS and pay them off in full each month. As you noted, it could've been really bad if they had taken more than $25 out -- could've bounced a mortgage payment, for example.

 

I've preached that message for years here, and some people call me paranoid. That''s their right, but all I know is that if someone steals my number, they're not actually touching my bank account.

 

That was sound advice in 1999, but today most banks cover any fraud liability 100%. What you should really do is make certain that your debit card has full liability protection.

 

On a related note, when you are asked debit or credit; always select credit. A debit transation is paid for by you (not much . . . usually less than 15 cents), wheras a credit transation is paid for by the vendor.

 

Just because you've done it for years doesn't mean it's safe. That's like someone saying, "I've never worn a seatbelt and have never been injured while driving."

 

Imagine your payment is going to your mortgage company. An hour before that, scammers clean out your account. Now your mortgage payment bounces, which is reflected on your credit report. In addition, banks are under no obligation to refund your money, although they usually do.

 

It's just silly not to use credit if you have it available to you.

 

Fez, I'm not trying to pick on you, but this is just incorrect. A bounced mortgage payment would only be reported to a Credit Reporting Agency if the payment is more than 30 days late. A "bounced" payment is not reported.

 

Secondly, considering how poorly most people manage credit cards, I would hesitate to recommend using credit cards simply because they are available to you.

[Gary M]

Now your mortgage payment bounces, which is reflected on your credit report.

 

 

I thought that the payment had to be so many days late before it showed on your credit report?

[Chilly]

On a related note, when you are asked debit or credit; always select credit. A debit transation is paid for by you (not much . . . usually less than 15 cents), wheras a credit transation is paid for by the vendor.

 

This isn't exactly true. There are two different types of debit transactions, online transactions and offline transactions. Offline transactions are ones that are run as debit but don't use a PIN. These you are required to sign if the cost is over $20, and just like credit cards, there can be a fee of up to 2% of the transaction charged to the merchant.

 

Online transactions are debit transactions when you use your PIN. *If* you receive a fee for these is up to your bank. Bank of America, for example, doesn't charge you at all to use your debit card. Each time I do a debit purchase, it's completely free. And, as you mentioned, they have fraud protection on the debit cards that match what they offer on their credit cards. On online transactions, there usually is a fee to the retailer as well, but it's less than the normal 2% for an offline transaction (normally like 10 cents).

 

Personally, I dump everything on a credit card & then pay it off in full each month. That's only because I used to use my debit card for everything and figured, "why the hell not get some rewards points". I *never* leave a balance on the thing.

 

Started in April, and booked a free flight next month & still have $120 left or so to save up for the next one.

Edited October 30, 2010 by BlueFire

[ExiledInIllinois]

Wow. Surprised they didn't clean the account out, instead of just $25.

 

Why would they clean it out. Instead take 10 or so bucks from a bunch of people and they never suspect it. IMO, they can get way more money before it (the scam) is shut down.

[The Dean]

 

On a related note, when you are asked debit or credit; always select credit. A debit transation is paid for by you (not much . . . usually less than 15 cents), wheras a credit transation is paid for by the vendor.

 

 

Not sure what you mean here. I pay no fee, not even a penny, for debit transactions of any kind. I use a small Credit Union, for what it's worth.

 

As far as the vendor is concerned, the cigar shop I frequent prefers you pay by debit, as opposed to credit, if given the choice. I forget if they pay a lower fee, or if they get their money quicker, when the customer chooses "debit". Either way, I am only charged the amount of the sale.

[ExiledInIllinois]

Not sure what you mean here. I pay no fee, not even a penny, for debit transactions of any kind. I use a small Credit Union, for what it's worth.

 

As far as the vendor is concerned, the cigar shop I frequent prefers you pay by debit, as opposed to credit, if given the choice. I forget if they pay a lower fee, or if they get their money quicker, when the customer chooses "debit". Either way, I am only charged the amount of the sale.

 

One of my bank acounts is with a small local bank... They charge the $.25 debit fee... Yet, everything is not done in real time... Things get tagged as pending, then clear... They must have a program... Because they will not clear it if something doesn't look "clean."

[Chilly]

Not sure what you mean here. I pay no fee, not even a penny, for debit transactions of any kind. I use a small Credit Union, for what it's worth.

 

As far as the vendor is concerned, the cigar shop I frequent prefers you pay by debit, as opposed to credit, if given the choice. I forget if they pay a lower fee, or if they get their money quicker, when the customer chooses "debit". Either way, I am only charged the amount of the sale.

 

As I said in my post, its up to each bank to decide. BoA didn't charge a fee either, but many banks and credit unions do.

 

This only applies to online debit transactions.

Edited October 31, 2010 by BlueFire

[BuffaloBill]

Wow. Surprised they didn't clean the account out, instead of just $25.

 

 

They do this because it is less likely to be noticed. Perhas spouses may assume that the other partner gave the money away or people just not looking at their statement carefully. You might miss $25 you are not likely to miss the whole account being drained.