Identity Theft - It just happened to one of my credit card accounts

I had read about identity theft, but until last night, did not realize how easily it can be done. It just happened to one of my credit card accounts.

On one of our credit cards, we had made internet purchases at four different places in December, 2006. We believed we knew who all four places were, and three of them are major U.S. organizations or companies. Someone only having the information from our credit card number, CVV (CID), our name, and guessing (or computer guessing) one other bit of data, was able to open up an online account on the credit card.

Their next step was to change our address to a place in a different state, our phone number, and our e-mail, on the account. That took place at the end of January, 2007. February 2 and 3, they placed an order at two different companies for computer and electronics items. The two orders totaled over $3,800. The items have been delivered to their address. The street is a valid name, and the number is a valid range, but there is no house at that address. The phone number connects to an answering machine, and results in no number found on a web search.

We had not gotten the credit card statement for the end of January. Reason, it was sent to the new address!

1. Called the credit card company and got the account closed. This prevents new charges. They agreed that we would not be responsible for the two charges.

2. Did a free online credit check. Our address, phone, etc. has been changed in the three credit reporting agencies. Using online, if we put a credit watch on the accounts, guess where they contact to allow new credit card or loan applications? Right, the bogus phone and address.

3. After going through several different automated phone menus, finally got connected to a real person. They were able to put a credit watch with notification to our correct phone number. This will also prevent someone from applying for new loans or credit cards, without them first contacting us. Investigation of the address information can take up to 45 days. They also require a police report of the fraudulent activity, to support our case that we do not live at the bogus address.

4. Back to our other credit cards, we put a notification to us if charges exceed a specified dollar amount.

5. For credit cards that we did not have the online access, we opened an online account, so someone trying to change the information this way would need both a username and a password to access the file.

This process is still ongoing, but from what I have already learned, it is better to have online access set up, to prevent someone else from doing so. It is amazing to me how easily someone else was able to do this to our account.

You are entitled to one free credit report each year. If you suspect unusual activity, do a web search for "credit report" or something similar. Look for one that does not require you to set up an account with them, in order to get the report. You will have to provide several personal information items for them to verify who you are.

Many credit cards have a variety of limits and notifications that you can place on your account. At least review these options to consider what is appropriate for your situation.

The good news out of all of this is that so far, I have not had any financial loss, and two that my other credit cards are now more secure against someone else using them or changing the information.

I am sure that I have not heard the end of the activity related to our compromised information.

Wes R.

Re: Identity Theft

Wes, you have my sympathy. This is such a humiliating/degrading thing to go through. Thiefs and predators will have their own level of restitution in the afterlife (IMO).

Anyway, more later. But.... for now reside in this: Be glad this was not a debit card.

Re: Identity Theft

Hi Brad,

Thank you. Other than several hours last night and this morning, that my wife and I have spent working on stopping the activity, we feel it could have been much worse. I am hoping that by alerting people to some of the things we learned, that others may close one of the apparent holes in the system.

Wes R.

Re: Identity Theft

BradM said:

Be glad this was not a debit card.

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Good point Brad - and something folks should take heed to - you may be protect from loss in the long run - but debit cards access your working capital - grocery money, gas money, stuff for kids, etc. You may be able to recoup the loss - but could make for a couple of rough weeks!

Re: Identity Theft

Sorry to hear, but thanks for the heads up.

I recently made a large purchase on my Discover Card and was very pleased when I received a call from them the next day to verify if I had in fact made the purchase. I have never ask them to monitor my account, but I think that most of the major companies monitor on their own to try to contain unauthorized purchases ASAP.

It's probably a good idea to periodically touch base with your card companies to verify their information on you. If they didn't have my current phone number, it would have taken longer for them to follow up on the purchase. I also use each card every other month or each month for small purchases and wait for the billing. If I don't receive a billing, it acts like a flag to investigate that account.

I access my credit card accounts and bank account online. I look at them a couple times a month. I don't even get a bank statement any more. I print out the online statement to reconcile.

I also do the free yearly credit check and keep those in a file. I just did this year's free check about 3 weeks ago. But the yearly check would be too late to make a difference. The idea of the 'guard' or 'watch' service the 3 US credit companies offer is probably a good deal but I hate to have to pay for the 'service'. I probably should.

I've seen several shows on TV about identity theft, but have to say I personally hadn't worried about it. You know how it goes - It's not a big deal until it hapens to you.

I have thought about credit cards and have a 'special' low limit US$2K card I use for almost all transactions because I have a modicum of apprehension when buying things online. But then again, it's pretty well known that you're only responsible for a maximum of US$50 for fraudulent purchases.

Anyway, I guess I shouldn't be surprised that 'one of us' ran into the problem. Good thing it was only a credit card and not a home loan or something where they completely assumed your identity at the the three credit bureaus. They've had some real scary stories on TV. One I remember a few details of was where a woman was living in a house in another state bought with a loan obtained from the person whose identity she stole. Because of the state issue, they couldn't do anything to the woman who stole the other person's identity, or something like that, and the woman was still living in the place she bought. It was really weird. Now, I saw that a number of years ago so I really don't remember much else and I'm betting the laws have changed since then. But then again, this is a US government web site (boy, is it BAD....) The FTC's Identity Theft Web Page. The Social Security Administration's web site is a bit better. It starts getting serious when someone gets your social security number.

I hesitate to cite Wikipedia with respect to serious stuff like this, but:

Identity_theft

Since there are people visiting here from around the world, what is happening in YOUR country? Is identity theft a significant problem?

lgibson said:

I recently made a large purchase on my Discover Card and was very pleased when I received a call from them the next day to verify if I had in fact made the purchase. I have never ask them to monitor my account, but I think that most of the major companies monitor on their own to try to contain unauthorized purchases ASAP.

Click to expand...

I suspect there is some type of monitoring going on for credit card activities, but two things can affect this. 1. If the size of the purchases is not large compared with your credit card limit, and prior purchases, it may not cause a flag. 2. In my case, the person had changed the contact information prior to making the purchases. The phone, e-mail and address were all switched to the bogus information before they charged the card.

I know one person that the company had called when charges in three distant states showed up a day or two apart. It happened during travel from Indiana to Seattle, Washington, for the ASQ WCQI.

Wes R.

I've read the long-term odds of having to deal with this are something like 1-in-4. I'm sorry it happened , but it's actually kind of surprising so few of us have this story to tell : .

My card holder calls if online purchases are over a certain amount, or if there's a certain amount in one day. When getting the call I have thanked the person profusely; the person was gratified because many people complain about this service. Imagine!

It's in the bank's interest to implement such a policy because they stand to lose if the charges are contested. But then we lose too--our time to plow through this process isn't being measured. And, it is up to us to let the bank know at once--at once!--when this fraud is spotted.

My longstanding beef is that these costs vastly outpace those of consumer fraud--yet the banks sometimes seem pretty clumsy (Keystone Kops at times) at prevention.

Wesley Richardson said:

I am hoping that by alerting people to some of the things we learned, that others may close one of the apparent holes in the system.

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And for that I thank you Wes. It is obvious that there are holes in the systems, and equally obvious that we don't get to hear half of what is going on. The banks are certainly not advertising the fact... It is poor P.R.

Marc said:

Since there are people visiting here from around the world, what is happening in YOUR country? Is identity theft a significant problem?

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It definitely is, and I'm convinced it's a global problem.

Apart from what Wes experienced, there are some thugs setting up false bank pages, then mailing people and trying to convince them to follow a link to that page in order to "update their security settings". Evidently some people fall for it, because those mails keep coming all the time.

/Claes