CONSUMER ALERT Demand new CreditCard number if you think the card is compromised

Rick Bergeron - CPF

SGF, Supreme Grumble Framer
Joined
Aug 18, 1999
Posts
2,280
Location
Canistota, SD USA
Business
Lost Cajun Chateaux
How many times have you heard, "We had a security breach and recommend that you monitor your credit card charges for unauthorized transactions. YOU ARE PROTECTED AGAINST FRAUDULENT TRANSACTIONS" Seldom are you told, "Cancel the card and get a replacement". Fooey on that recommendation.

Call the issuing institution and demand a replacement card as soon as you know about it. Do not wait.

While true that you are not responsible for fraudulent charges, every merchant who accepts the fraudulent card before you report any fraud WILL BE RESPONSIBLE for the cost of the purchase AND the chargeback fee which varies from $25 to $50. The CC companies actually make more money by not replacing the cards because they get their fees and chargebacks for all the transactions until you report it. You are helping propagate the fraud even though protected from it yourself. We have been on the receiving end of that type of transaction and it is not fun knowing that the sale cost you the value of the product, plus the retail amount of the order, plus the credit card fee, plus the chargeback fee.

Recent case: 10 local grocery chains, utilized a common POS, processing CC through their POS via an internet connection had BOTH TRACKS of every customer's credit card information stolen as a result of an unknown security breach for a period of several months. Once we heard about the breach, that explained why we had every credit card we own compromised & replaced in the last 3 months. I was most disappointed by the way AMEX handled the replacement. AMEX refused to replace the card until it was actually utilized fraudulently causing 2 merchants to loose money. I reported the fraudulent activity but AMEX said they would not replace the card until the daily sales were 'batched' by the merchant(s).

Another case: We received a note from a promotional products vendor telling us that our entire account information, along with the credit card information, stolen due to a database breach. They did not report the issue to the credit card companies; just sent the customers a snailmail letter.
 
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