Becoming a victim of credit card fraud

44 posts in this topic

 

if criminals stole ID card and did same kind of signature?

 

There are different kinds of transactions, such as:

 

  • card present and verification by chip-and-PIN
  • card present and verification by signature
  • card present, manually copied with old-fashioned off-line machine, and verification by signature
  • no card present (e.g., online) and verification by giving the last 3 digits from the back
  • no card present and verification online using "Verified by Visa" etc.

 

 

The risk for fraud with each of these types of transactions is different. The credit card company takes a different commission from the merchant every time (e.g. 1%, 2%, 3%), depending on the type of transaction used, in order to cover losses from fraud.

 

Some merchants may opt to pay the higher commissions in order to attract more business by letting their customers use their cards as conveniently as possible: online and with no "frustrating" verifications.

 

That's their problem (or business decision, if you prefer). As far as you are concerned, the burden of proof is not on you, especially in those cases: the credit card was used without being physically present (so you didn't lose it or misplace it) and without inputting any information which you were contractually expected to keep secret (the PIN).

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The credit card company takes a different commission from the merchant every time (e.g. 1%, 2%, 3%), depending on the type of transaction used, in order to cover losses from fraud.

CC company doesn't cover any losses, the money is withdrawn from the merchant. They take commission to make money, as this is not a charity. Commission doesn't depend on which security is used.

 

It's up to a merchant to use different type of security or not. For example, Amazon doesn't even ask for CVV code because the goods are delivered to a physical address, so the risk of fraud is low.

 

On the other hand, airlines use 3D security as the risk of fraud is very high. In my case the fraudster booked a flight ticket on Friday evening and successfully flew away from EU on weekend. I could only discover this on Tuesday. The merchant (travel agency) has reimbursed me the money. I hope this will motivate them to use 3D security.

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Commission doesn't depend on which security is used.

 

Mastercard begs to differ. The so-called interchange fees depend on a variety of factors, including the security method used. A transaction where a card and its owner are physically present and which is verified by chip + PIN costs less than a transaction over the phone where only the CVV code is entered for verification.

 

Something similar also applies to Maestro (debit) transactions. For example, if the card is present and verification is done by chip+PIN, the rate is 0.14% + €0.015. If the verification is done by signature, the rate is 0.15% + €0.015.

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So I'll reopen this thread (Nov 2017) as I noticed two transactions (on two separate cards)

that were not performed by me....

 

Card companies reacted quickly - new cards with new card numbers within days were delivered to me at home.

 

One company now wants a copy of the "Anzeige" so I went to the police this morning

and got them to open a case.

 

Local copshop very helpful - but remarked that they have two or three of these cases EVERY DAY.

To put that in perspective - I live in a town (pop. 20.000) in Schleswig Holstein not really known for

ciminal activity.

 

So everyone - check those statements regularly (at least monthly) and cancel 

any doubtful transactions. (Card companies have reimbursed me already)

Also ask the card company if they can send an SMS for each transaction.

This is how I stopped the first transaction within the hour.

 

 

 

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