The dangers of paying with credit cards

[Peter Gibbons]

There was a short segment on TV a couple of days ago about some high volume upscale restaurants being targeted by thieves.

The only thing they took was the electronics cash register ( that contains no cash ).

The security experts were saying that the thieves were after the hard drives embedded in those registers.

Apparently many of them had all the credit card data of tens of thousands customers. Just this data was worth over $50,000 ( probably much more than $50K )

The credit card companies are not required by law to reveal that the data had been stolen. This data is used for identity theft and causes people big headaches ( and money ).

The only advice given - pay with cash and keep close eye on your credit card statements.

[David Randolph]

Most such thefts today are done totally electronically. The breach at Heartland Payment Systems was done via the insertion of "malware" into their systems. A lot of restaurant systems are being attacked via the Internet.

[The Gorn]

Apparently, sometime in 2007, systems containing captured credit card information at a provider to Bike Nashbar were compromised and millions of credit card numbers were stolen.

Last summer I was getting charges for some scam called "Google Moneywords" being posted to the same credit card number. I then looked online and found the connection between these charges (from some offshore company) and the fact that other customers of Bike Nashbar were getting hit with the same charges.

The credit card company (Chase) acted like this was utterly unique and it never heard about this scam. It took me several hours and escalating through several levels of security people to get the fake charges dismissed. They acted like I was on trial, and I had to finally get the credit card number deleted and reissued.

I'm suggesting that credit card fraud can happen from anywhere. This did not even involve an online transaction. I used that card number once to buy a pair of bike shorts from Nashbar in early 2007 and I called that order in.

[TRexx]

I use Quicken to manage my personal finances. Whenever I get a new credit card it must support direct downloads of all transactions.  This lets me monitor my accounts on a daily basis and track down bogus charges within 24 hours -- much better & easier than wading through the monthly statment.

In 20 years I've only had 2 bogus charges -- one was simple clerical error at my local gas station which the owner resolved on the spot.  I'm sure that was because I reported it to him the day after the charge posted.  The other was probably an attempt to steal my account number.  Again, because I reported it within 24 hours, Citicorp canceled my card and the charge immediately.

[Aussie]

What's the solution?

Credit cards are bad, because of the reasons cited above.  Debit cards are a no-no....see Goddard's recent posts.  And with cash, you risk someone going the iron-bar on you.

What's a fellow to do?

[Origisaurus]

And with cash, you risk someone going the iron-bar on you.

What's a fellow to do?

In the US, more and more states are issuing concealed-carry permits.  That alters significantly the risk/reward ratio of the iron-bar approach.

[TRexx]

And with cash, you risk someone going the iron-bar on you.

What's a fellow to do?

In the US, more and more states are issuing concealed-carry permits.  That alters significantly the risk/reward ratio of the iron-bar approach.

That assumes you can draw and fire before the iron bar connects with your head. 

[Origisaurus]

And with cash, you risk someone going the iron-bar on you.

What's a fellow to do?

In the US, more and more states are issuing concealed-carry permits.  That alters significantly the risk/reward ratio of the iron-bar approach.

That assumes you can draw and fire before the iron bar connects with your head.

Yes.  And if you expect to be assaulted, you can draw and be ready to shoot back first.

My point was that if a mugger is assured that his victims will be helpless, as in a non-concealed-carry jurisdiction, he will be braver than if he doesn't know whether the potential victims are armed.  It's about the deterrent factor.

[Aussie]

Even a pacifist benefits, I see, since the potential mugger does not know whether he is about to mug a peacenik or a Charleston Heston.  The concealed-carriers effectively innoculate the entire populace against the muggers to some extent.