We have all heard the news reports of identity theft. You may even have experienced it yourself. However, I have had a recent experience I want to share with you, that you may be able take some lessons from.
Last week I went to pay for my dinner at a local restaurant by using one of my credit cards (one of the ones with the new memory chip in it). The card was rejected. I treated it rather lightly and figured I missed a payment, something that I try to avoid, but which does happen from time to time. My thought was I would pay it over the weekend and be up and running again by midweek, at the latest.
On Sunday I called the bank and learned that my account balance was more than $21,000. I almost had a heart attack as I sat in my chair listening to the message. I knew I had not made those kinds of purchases and that I had better talk to a real person, ASAP.
I called the Lost Card department and got through to a real person. When we began going through my purchases since my last statement, I could identify everything until she asked about a cash advance. “I don’t use my credit card for cash advances.” was my reply. We went through some more purchases, including a couple really small ones that I did not recognize, but weren’t worth worrying about. Then she asked about another cash advance… and another… and another. In total, there were 23 cash advances of $750 or more.
Leaving much of the minutia out, I have had several conversations with the bank investigators and RCMP (our local police force) over the last few days. In summary, this is what I have learned, and what I pass on to you for your information:
- 1. There is a gang of bad guys working the North Shore stealing credit card data.
- 2. They think my mail was compromised and that the bad guys intercepted both my card info and PIN directly from my mail
- 3. Both the card and PIN were then remailed to me, with the PIN on what may be a phony letter. (My PIN letter, which fortuitously I kept, is now with the RCMP.)
- 4. There is also a possibility that a retailer I shopped at had its credit card information mined, although this is the less likely scenario. NB: At least one of the North Shore theatres has had its system attacked.
- 5. The bad guys use the card for cash advances until they can't use it any more. They may buy gas at a gas bar, but tend not to make purchases where they could be identified later by a person.
The lessons I have been handed over the last week include:
- 1. Those chipped cards can be compromised.
- 2. As soon as you receive one, after activating the card, change your bank issued PIN immediately, and frequently after that.
- 3. If your card has been compromised, this will limit your exposure to the fraud, but may not eliminate it. The bad guys go to work within days of collecting your information, giving you sufficient time to activate your new card. They may even activate the card themselves, although this is unlikely. They don't want you, the legitimate card owner, to call to activate your card, only to find it has already been activated by someone else.
- 4. Check your credit rating at least annually, and preferably every 6 months, to see if anyone is creating accounts in your name. CHECK BOTH!
- a. Equifax Canada 1 800-465-7166
- b. Trans Union Credit 1 800-663-9980
- (As I noted above, these numbers are for Canada. My American friends should check for the US phone numbers.)
- 5. When they arrive, check your credit card and bank statements carefully for irregularities.
When this first started I thought it was a bit of a joke, and treated it lightly. However, as a result of my talks with the RCMP I recognize how serious this really is. I do not know yet whether or not I have been a victim identity theft.
Take some lessons from my experience.
