Credit Card Compromised

[dennishoddy]

Got a letter from Kahr Arms the other day saying their computers had been breached, and the Credit cards that had been used in the past in business transactions with them had been compromised.
Wife checked our account, and we found $1300 and some dollars of false charges from NY to California. This was Friday at 2:30. Wife disputed the charges, and Saturday around noon, FEDEX delivered two new credit cards. We assume they will clear the charges, but have to wait until Monday to check.
If anybody has done some business with Kahr Arms, check your CC account.

 

[davek]

This why you use a credit card and never a debit card.

 

[MacFromOK]

This why you use a credit card and never a debit card.

+1

 

[nemesis]

My wife's credit card was similarly hacked and the company refunded the money. One charge, I'd never heard of, was an inmate video call for $28. Weird. Hers was only a credit card.

But if one uses their credit card which also happens to be a debit card, and they only use it as a credit card (no pin number), why is that more vulnerable than a credit card?

 

[dennishoddy]

This why you use a credit card and never a debit card.

It is a credit card. I don't own a debit card.

 

[MacFromOK]

But if one uses their credit card which also happens to be a debit card, and they only use it as a credit card (no pin number), why is that more vulnerable than a credit card?

It probably isn't, if you only use it as a credit card.

With a debit card, the money in question is already gone from your account. With a credit card, you can challenge charges before paying the bill.

I'd say the card company has more incentive in the second scenario.

 

[davek]

It is a credit card. I don't own a debit card.

Using a credit card saved you a ton of trouble. That was the point I was trying to make but did so poorly.

When I read the agreement that went along with a debit card offered by a bank I declined it. Credit cards have much better protection than debit cards, I'll never use one.

I'ts not a question of vulnerability for debit vs credit, it's what happens after a fraudulent transaction - it can take forever for a bank to restore funds lost in a fraudulent debit card transaction. But has dennishoddy pointed out, credit card companies take care if the problem pretty quickly.

 

[dennishoddy]

Using a credit card saved you a ton of trouble. That was the point I was trying to make but did so poorly.

When I read the agreement that went along with a debit card offered by a bank I declined it. Credit cards have much better protection than debit cards, I'll never use one.

Its cool. Absolutely never use a debit card. We have one CC, and one only. Paid off monthly.

 

[ConstitutionCowboy]

We had a debit card and it had been compromised three times. The first two times the charges were just over two hundred and the bank eliminated the charges , sending us new cards each time. On the third compromise, the charges were over two hundred fifty and we had to file a report with the police in order to have the charges removed. We cancelled the debit cards and went without for over a year. A need arose for some type of card a short while ago and we opted to go with a credit card this time. So far, so good!

One time while we had the debit card, we used it to rent a post hole auger. The bloody thing broke down before it dug one hole and we took it back and demanded a refund/release of the 'hold' on the card. The rental place 'released' the hold of the deposit and even gave us a receipt showing the release. We checked with the bank the next day and the 'hold' was still on the card and the bank said it hadn't been released by the rental company. We went back and forth between the bank and the rental company, each one saying it was the other's 'fault'. It was something like 4 or 5 days before the 'release' was secured and we could safely write checks.

It was shortly after that that our card was compromised for the third time. (We bought (paid cash) for a new post hole auger rather than rent one. We've used it so much that it has paid for itself vs. rental at least three times over!)

Lately, the checks we write at most places are treated like a one time debit on our account. It seems to be secure enough. We haven't had a bogus withdrawal since most places have started treating checks as a one time withdrawal.

As for the debit card scheme, no thank you! We'll continue to write checks or use cash and only use the credit card when necessary.

Woody

 

[dennishoddy]

I've posted this before, but as a refresher,
What's sad is that the CC companies and in one case local officials don't want to take the time to find these criminals.
Two years ago Walmart notified us they had stopped an order of over $600 from somebody because they didn't have the 3 digit security code. They sent me a copy of the order that even had a delivery address in Portland Oregon.
I called the Portland PD fraud division and tried to file a report and see what could be done. The person I talked to wasn't interested in even getting a copy of the Walmart order/address to look at to see if there was any associated criminal activity. Bigger fish to fry I guess. The CC company wasn't interested either.
They were more than happy though to issue new credit cards.