Posts Tagged ‘credit card fraud’

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27
Oct/1113

Another Great Reason To Loose Your Bank Debit Card: Monthly Fees

A colleague business owner noticed a transaction on his bank account that wasn’t appropriate.  A check had cleared for an amount much too large for the dollar range of checks his company typically writes.  Within minutes he identified that the check had been altered and cashed, for approximately 1,900% more than it was originally written.  Consistent with requirements, he contacted his bank and alerted them to the problem.  Later that same day he was at the bank completing and signing an affidavit.  Once completed, he needed to get the funds back into the company’s account to pay bills.

That occurred in February 2011, and he is still waiting for the bank to return his funds.

More and more banks are shifting away from taking the hit from fraudulent activity, moving towards sharing the fraud loss with the customer.  Some banks now refer to fraud as a “shared responsibility” between their financial institution and their customer.  That makes sense, as account holders should have measures in place to minimize their losses from fraud.   However, fraud can still occur even with the best of controls.

In the latest update on debit cards,  Bank of America and other banks recently announced they will begin charging bank debit card users a monthly service fee.  According to news reports, Bank of America plans on charging $5.00 per month for the privilege of using a bank debit card, while other banks are planning on charging lower amounts. (here’s the URL to a good article – http://www.nytimes.com/2011/09/30/business/banks-to-make-customers-pay-debit-card-fee.html).

Bank debit cards are readily targeted and sought by fraudsters as they provide direct access to victims’ funds.  If successful with your account, you, the victimized debit card holder, will be at the mercy of your bank to replenish your funds into your account.

My position on bank debit cards has remained unchanged.  Save yourself the aggravation and now any monthly fees.  Loose your debit card, and return to a classic credit card along with a stand-alone ATM card.

And as always, remain vigilant in monitoring your bank and credit card statements and activity regularly.

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Filed under Battle on Fraud 13 Comments »

24
Jan/1143

Woman Receives 20 Year Prison Sentence – For Embezzling?

Reading the morning Google News articles on embezzlement, I was truly flabbergasted when I saw this story.

In my experience it has been difficult if not impossible to have a convicted embezzler see the inside of a jail cell.  If sentencing has included any jail time at all, it was common for the term to be very minimal, and frequently it was served at a half-way house or equivalent.  “We have limited space in our prisons, and we need that space for the violent criminals” is a common response I have heard, not that I could argue with that logic.

But still, I truly believe the level of theft and embezzlement is where it is today because individuals no longer fear the consequences of their actions, meaning they don’t perceive their chance of going to jail as being realistic if they steal large amounts of money from their employers or anyone else for that matter.  In sentencing I have experienced in my cases, I can’t argue with that either.

So, much to my surprise, when I saw that a woman was convicted and sentenced to twenty (20) years in jail for embezzling $408,500, an amount less than a million dollars, I took notice.  I have had individuals convicted of stealing well over a million dollars and receive a fraction of what Ms. Mattoon received.

I am by no means saying I believe someone who embezzles should not be appropriately punished for their actions, because I firmly believe there should be genuine consequences for stealing any amount of money.  I am seeking, though, some level of consistency in the sentences received by individuals convicted of embezzling, so that we can see the perceived and genuine risk of going to jail return, reducing the frequency of occurrence for victims of these crimes.

I am just trying to equate embezzling with twenty years.  Do you think someone who stole $408,500 should have received a prison sentence of twenty years?

Here’s the URL link to the story:

http://www.ktvn.com/Global/story.asp?S=13853352

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29
Jun/102

Credit Card Fraud: Tiny Grains of Sand Can Result In Large Piles

I learned of this scam against credit cards while volunteering during my shift in the kitchen at our church’s bingo one night.

A small charge, an amount under a dollar up to a few dollars, appears on your credit card statement.  Due to the insignificance of the amount, you don;t bother spending any time trying to figure out what it was for, and having it reversed off your account.  You try and recall where the charge could have come from, perhaps an adjustment to a legitimate purchase.

I never thought much about thieves stealing million of credit card accounts, and simply charging a few dollars to each stolen account.  But as it turns out, that’s exactly what they do, and a few dollars charged to millions of accounts, results in millions of dollars.

I went home that night and checked my credit card statements, and sure enough, I found these insignificant charges on my account.  The total of them do not warrant my doing anything about it, but they are there.  I’ll bet if you look, you’ll find them on yours as well.

Here’s the link to an article where the FTC just busted a very organized ring was stealing credit card accounts and doing this very scheme.

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