topic Re: Contacted/declined for susceptible fraud? in Credit Cards

Contacted/declined for susceptible fraud?

GoldenloveNY — Thu, 10 Jan 2013 06:29:09 GMT

So my Discover card was flagged from the fraud department today after my purchase at Dunkin Donuts. I received a email and call from Discover to verify my DD purchase made on my discover card. They also wanted to verify two recent purchases at a restaurant (just to play it safe, I guess). I have never used my Discover at restaurants since opening it last September (I used my Zync for restaurants), but since Discover is now offering 5% at restaurants, all my restaurant spending is going on my Discover. I guess I can understand why my sudden change in spending habit triggered a fraud alert. I guess I would have to contact Discover in the next 5% category to prevent any fraud alerts, since I only use my Discover for its 5% categories and online portal.

So how many times have you been flagged by any cc for susceptible fraud? I know Amex placed a hold on my Zync, and immediately contacted me in the first month of getting my ZYNC for making three charges in a single day. Now, I can charge up to five times, and no problem.

Re: Contacted/declined for susceptible fraud?

mikka1 — Thu, 10 Jan 2013 06:39:58 GMT

I have a strange gas station in my town (Delta in Bloomfield, NJ if someone knows the area) - I used it with credit cards only TWICE in my life. Results were:

1) Amex BCE - declined at the pump, next day - declined in grocery. Had to call in - they placed a fraud alert after the pump tried to authorize $100 upfront.

2) Same gas station, BofA Cash Rewards. Several weeks after using it there because my BCE was declined (and there were no other transactions with that card at all! I use it very rarely due to a low limit) I got a letter informing me about account closure due to possible fraud and several days later I got a new card.

Needless to say, I'm not visiting that gas station anymore ) 2 out of 2 is a little bit too much...

Re: Contacted/declined for susceptible fraud?

Anonymous — Thu, 10 Jan 2013 14:02:48 GMT

I don't think you need to contact them in advance (the only time I do that is if I'm traveling). Once they learn your spending patterns everything will be fine. It's scary how accurate they are with their fraud alerts, most of the time, even unusual purchases I make don't get flagged.

Re: Contacted/declined for susceptible fraud?

chan85 — Thu, 10 Jan 2013 14:08:05 GMT

@Anonymous wrote:
I don't think you need to contact them in advance (the only time I do that is if I'm traveling). Once they learn your spending patterns everything will be fine. It's scary how accurate they are with their fraud alerts, most of the time, even unusual purchases I make don't get flagged.

+10000

I work in fraud for a bank and that's pretty much what we tell our customers. Even if you tell us in advance, theres little we can do prevent you from getting flagged since its not a person reviewing each charge and deciding if it should be approved. Its a computer, the banks pay people to come up with all these different strategies and formulas to determine what will be declined and what should be let go in a matter of seconds. We would rather call you after the fact to verify or have you call us after the decline, instead of you calling ahead of time, having false expectations, and then still have to speaks wit us after anyway.

Re: Contacted/declined for susceptible fraud?

Anonymous — Thu, 10 Jan 2013 14:18:29 GMT

Was flagged twice by Discover a while back after making late-night purchases. They can't seem to figure my spending out since I rotate my card usage.

Re: Contacted/declined for susceptible fraud?

Open123 — Thu, 10 Jan 2013 14:33:56 GMT

Last year, I was purchasing some $25 Amex gift cards and was flagged for fraud. Had to call in and verify the purchase through an automated phone system. Also happened once on my HSBC on a recurring charge I recently added on to the card. Same thing, had to call and verify through the automated phone prompts.

Re: Contacted/declined for susceptible fraud?

Anonymous — Thu, 10 Jan 2013 14:48:22 GMT

Flagged twice by Cap One within a month for internet purchases:

1) Mobile top up with a UK provider. Top-up of anonymous SIM cards is apparently a good way for thieves to see if a stolen card has been reported, like a small gas purchase late at night in the US

2) Purchase of (pet) medications from a UK supplier.

They don't like their cards being used out of a region, even with a travel notification. (My daughters card got declined in the UK, even though she had told them, and they phoned here to talk to her, which didn't work very well.) I would get a UK Cap One card if it were easy!

Re: Contacted/declined for susceptible fraud?

chan85 — Thu, 10 Jan 2013 14:55:31 GMT

@Anonymous wrote:
Flagged twice by Cap One within a month for internet purchases:

1) Mobile top up with a UK provider. Top-up of anonymous SIM cards is apparently a good way for thieves to see if a stolen card has been reported, like a small gas purchase late at night in the US

2) Purchase of (pet) medications from a UK supplier.

They don't like their cards being used out of a region, even with a travel notification. (My daughters card got declined in the UK, even though she had told them, and they phoned here to talk to her, which didn't work very well.) I would get a UK Cap One card if it were easy!

Charges out of the UK are very risky. About half the fraud I see on a daily basis comes from there. And we do the same thing, even when notified of travel, we still may block it just because its a high risk merchant or high risk location. Same with gas stations, charges out of FL, CA, GA, MI, or NY very high risk states and activity...

Re: Contacted/declined for susceptible fraud?

Anonymous — Thu, 10 Jan 2013 15:03:03 GMT

@chan85 wrote:
@Anonymous wrote:
Flagged twice by Cap One within a month for internet purchases:

1) Mobile top up with a UK provider. Top-up of anonymous SIM cards is apparently a good way for thieves to see if a stolen card has been reported, like a small gas purchase late at night in the US

2) Purchase of (pet) medications from a UK supplier.

They don't like their cards being used out of a region, even with a travel notification. (My daughters card got declined in the UK, even though she had told them, and they phoned here to talk to her, which didn't work very well.) I would get a UK Cap One card if it were easy!
Charges out of the UK are very risky. About half the fraud I see on a daily basis comes from there. And we do the same thing, even when notified of travel, we still may block it just because its a high risk merchant or high risk location. Same with gas stations, charges out of FL, CA, GA, MI, or NY very high risk states and activity...

Yes, with Chip&Pin everywhere, UK criminals have turned their attention to weaker targets, which is US-issued credit cards at present!

But those are some big states you have listed there! Surely you don't query all charges from those places?

Re: Contacted/declined for susceptible fraud?

chan85 — Thu, 10 Jan 2013 15:35:06 GMT

@Anonymous wrote:
@chan85 wrote:
@Anonymous wrote:
Flagged twice by Cap One within a month for internet purchases:

1) Mobile top up with a UK provider. Top-up of anonymous SIM cards is apparently a good way for thieves to see if a stolen card has been reported, like a small gas purchase late at night in the US

2) Purchase of (pet) medications from a UK supplier.

They don't like their cards being used out of a region, even with a travel notification. (My daughters card got declined in the UK, even though she had told them, and they phoned here to talk to her, which didn't work very well.) I would get a UK Cap One card if it were easy!
Charges out of the UK are very risky. About half the fraud I see on a daily basis comes from there. And we do the same thing, even when notified of travel, we still may block it just because its a high risk merchant or high risk location. Same with gas stations, charges out of FL, CA, GA, MI, or NY very high risk states and activity...
Yes, with Chip&Pin everywhere, UK criminals have turned their attention to weaker targets, which is US-issued credit cards at present!

But those are some big states you have listed there! Surely you don't query all charges from those places?

Yeah we are fazing in the chip cards for some customers who travel frequently or request it, and its going to be standard issue for certain affinity cards that are aimed at travel i believe.

LOL No, we don't block all the charges (let some of our more dramatic customers tell it and we do though). What I look at it really only a pin drop of the transactions that come in to us as a whole. Plus they have figured out what merchants are more likley to be fraud in those areas. And if the cardholder doesn't live in those states and there are no signs of travel, then its mostly likely fraud. Lots of counterfeit cards running around in those states.

Re: Contacted/declined for susceptible fraud?

Anonymous — Thu, 10 Jan 2013 18:56:58 GMT

chan85: little off-topic, but found this figure for the UK, do you have an equivalent US figure (couldn't find it!)

Card fraud losses as a proportion of the amount we spent on our cards decreases – from 0.066% during January to June 2011 to 0.063% during the first half of this year

According to The UK Cards Association, total fraud losses on UK cards totalled £185.0 million between January and June 2012. This is a 9 per cent increase on losses in the first half of last year (£169.8 million), but represents a fall of 39% from the total of £304.2 million in the first half of 2008 when fraud was at its peak.

Figures suggest fraudsters bypassing security safeguards by duping consumers into handing over their own details

http://www.theukcardsassociation.org.uk/wm_documents/2012%20half-year%20fraud%20figs%20press%20release%20FINAL.pdf

So, you have all the tech, but if a customer can be fooled......!

Re: Contacted/declined for susceptible fraud?

chan85 — Thu, 10 Jan 2013 19:11:49 GMT

@Anonymous wrote:
chan85: little off-topic, but found this figure for the UK, do you have an equivalent US figure (couldn't find it!)

Card fraud losses as a proportion of the amount we spent on our cards decreases – from 0.066% during January to June 2011 to 0.063% during the first half of this year
According to The UK Cards Association, total fraud losses on UK cards totalled £185.0 million between January and June 2012. This is a 9 per cent increase on losses in the first half of last year (£169.8 million), but represents a fall of 39% from the total of £304.2 million in the first half of 2008 when fraud was at its peak.

Figures suggest fraudsters bypassing security safeguards by duping consumers into handing over their own details

http://www.theukcardsassociation.org.uk/wm_documents/2012%20half-year%20fraud%20figs%20press%20release%20FINAL.pdf

So, you have all the tech, but if a customer can be fooled......!

I don't actually. I am most familiar with my own banks info, and even to find the exact figures on what types we catch the most I would have to dig. But it would not surprise me if it was similar information. I can't tell you how often I call people to just verify activity and they interrupt me and say what do you need from me, and start listing card number, expiration date, security codes. ssns, everything! And that's unprovoked! I get customers all the time who say they got a call from someone saying they have to refund them some money, just need all their card info, and then BAM! We have western union charges being attemtped all over the place. Customers are their own worst enemies. If a box pops up on the computer or they get a call or letter, they just GIVE them the goat!!! And they are like they had my address so I thought it was ok, when half of them are listed in the white pages....... everybody has your address!

But I have a job, so can't complain too much.....

Re: Contacted/declined for susceptible fraud?

navigatethis12 — Thu, 10 Jan 2013 19:24:30 GMT

Discover did it three or four times after I went a few months without using the card.

When I used this mysterious thing called a debit card, PNC would ring if I didn't use it for a few days or a week and then charged somethng; it got annoying fast. Their credit card does not have the same issue.

First National Bank of Omaha did it when I first got the card and charged about 1500 at various online places.

Chase blocked a purchase they said was international; I was unaware the District of Columbia was out of the United States.

Macy's is somewhat weird in blocking transactions on the American Express account. They do not even ring me, I just find out it's blocked the next time I try to use it.

Citi questioned multiple Walgreens purchases of over $500 when I first got the card.

Barclays and FIA have never done anything and sometimes I make a single purchase up to the limit of the card.

I find it strange that some issuers let it go through before ringing, and some will not let it go through at all.

Re: Contacted/declined for susceptible fraud?

djrez4 — Thu, 10 Jan 2013 21:58:37 GMT

I guess the real question is: how many donuts did you buy, GoldenloveNY??