Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Credit Cards Compromised
Old 12-19-2013, 07:35 PM   #1
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Credit Cards Compromised

The hacking of Target's records apparently puts cardholders of any credit card used between black Friday and December at risk. Apparently the hacking came from abroad, probably China so apprehension of the criminals is unlikely. Acording to tonight's news, people are finding charges on their cards from online or places far from their homes.

One of the news broadcasts noted that there have been many security breaches in the past from places like TJ Maxx and some banks. The Hackers sell the listings which are complete with Name, Number, and security code... all that is included in the magnetic strip on the card. The persons who buy the data, can easily create copycat cards with the stolen information...

Some questions....
If it happened to Target, why not Sears or Walmart or Home Depot etc...
Since it's not only the proprietary cards, it looks like any credit card can be involved.
Who is responsible for the losses? Are individual losses limited to the $50?
What happens stolen cards become viral?
Can you and I do anything to prevent being compromised? Stopping your account? Asking for a new card?

Not sure, but I think the news said somthing about using debit cards as credit cards, to avoid problems... Not sure about that.. More info?

Previous security breaches seem to have been brushed over, with no serious repercussions, but the Target problem seems to have gotten more concern. It surely isn't going to help their sales during the most important sales week of the year.

Open for additions, corrections and more information...

Chicago Tribune article:
http://www.chicagotribune.com/news/s...743,full.story
__________________

__________________
imoldernu is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-19-2013, 07:41 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Your Liability for Unauthorized Credit and Debit Card Charges | Nolo.com

http://www.cbsnews.com/news/what-to-...-theft-victim/
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 12-19-2013, 07:51 PM   #3
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
From Midpack's link... on debit cards...
Quote:
"The good news is, from what Target has said, what was stolen was card data and not personally identifying information," Herron notes. "Unless they get your Social Security number and address, it's really hard for whoever is behind the breach to apply for credit in your name."

Nevertheless, one question that remains is how the breach will affect people who used their debit cards at Target. While the retailer hasn't said the breach affected PIN numbers, consumers should be aware that debit cards don't have the same type of protections as credit cards, Herron notes.

"If your debit card is stolen, your losses can be unlimited, depending on what's in the bank and when you report fraudulent charges," she notes. "If you have to shop with the money you have, then I would pull cash out" of the bank for purchases, rather than relying on a debit card.
That's pretty scary...
__________________
imoldernu is offline   Reply With Quote
Old 12-19-2013, 07:51 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
We have had a number of unauthorized charges on various credit cards these past few years. In all but one case, when we had a brand new card, the card company fraud department caught the charges before we did. I think that was because we hadn't established any normal shopping patterns yet for them. Now they know we aren't buying prepaid phone cards in Mexico.

One of our kids had a fraudulent debit card transaction and the credit union took care of it and sent a new card.

We hadn't been to Target in months but went within the hacking time frame and used a credit card. So far we have not had fraudulent charges, but we are going to keep checking.
__________________
daylatedollarshort is offline   Reply With Quote
Old 12-19-2013, 07:55 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,328
I would not recommend use of debit cards to avoid the problem. Debit cards make the problem worse for the consumer since debit cards do not have the same legal protections against fraudulent use that credit cards have. The banks lobbied long and hard to make sure that debit cards were not covered like credit cards. Let the consumer beware.

If I used a debit card on any regular basis, I would have it linked to an account that had only a minimum of money in it at any time, so they could not drain a large account.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 12-19-2013, 07:56 PM   #6
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,345
I rarely go to Target but did during this time period and used my credit cad to buy a $5 string of Christmas tree lights... I am watching my card and so far there have been no fraudulent charges.
__________________
Helen is online now   Reply With Quote
Old 12-19-2013, 08:03 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Interesting attack in that they say it involved skimming the data from card readers but 1700 stores were hit. Skimming usually involve tampering with the hardware to put in a fake scanner to take the info, that's a lot of scanners to modify all at the same time. Maybe some inside involvement, intercepting the network data between the scanner and the processing system. They said online transactions were not hit.

For CC you are only liable for the first $50 , when you report the lost/theft. For debit cards you are responsible for all of it ( unless the bank has allowed other limits ).
__________________
rbmrtn is offline   Reply With Quote
Old 12-19-2013, 08:08 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
I shopped at Target on December 5th. I paid with CASH. Anonymous and safe.
__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 12-19-2013, 09:46 PM   #9
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,373
We shop at Target a lot (it is closer than Walmart) with a debit or credit card but amazingly were there two days before and two days after the problem dates. Whoa.

I wonder if the chipped cards would have all that information embedded within them, the security code, etc.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 12-19-2013, 09:57 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,885
I'd glad there is no Target near me that I go to.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 12-19-2013, 10:02 PM   #11
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,093
Quote:
Originally Posted by Bestwifeever View Post
I wonder if the chipped cards would have all that information embedded within them, the security code, etc.
Not sure if a piece of software in the stores computers can intercept card details like the swipe variety, but from what I understand the PIN and CHIP are not copyable.

A CHIP and PIN card is just as susceptible to not-in-person purchases as regular cards once someone has the number, expiration date and CVC which are all printed on the card.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 12-20-2013, 05:39 AM   #12
Thinks s/he gets paid by the post
Marita40's Avatar
 
Join Date: May 2011
Location: St. Paul
Posts: 1,118
I used a Target red card (debit) during this time. I just changed my PIN at their website as was advised. I will monitor the account closely.

The red card gives a 5% discount on all purchases, so it is worth it to me. I don't keep much money in the checking account it draws on.
__________________
Marita40 is offline   Reply With Quote
Old 12-20-2013, 05:54 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,463
I got my IPad trade-in credit from Target, but hadn't yet bought the new IPad mini because the new Retina Display ones aren't available in stores yet and very limited availability on line. Wow - glad they hadn't swiped my credit card yet! <-- Ooooo pun! "swiped" - LOL!

Merchants/issuers need to get their security act together! Maybe this will wake them up!
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 12-20-2013, 06:15 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
We only have a debit card because our bank issued them in lieu of ATM cards, presumably common? We never use it otherwise (why not take advantage of the float), now I'm glad we don't. I didn't realize how different the liability could be. Yipes...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 12-20-2013, 06:20 AM   #15
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,445
Quote:
Originally Posted by audreyh1 View Post
Merchants/issuers need to get their security act together! Maybe this will wake them up!
Exactly.
__________________
MichaelB is offline   Reply With Quote
Old 12-20-2013, 06:37 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,463
Quote:
Originally Posted by Midpack View Post
We only have a debit card because our bank issued them in lieu of ATM cards, presumably common? We never use it otherwise (why not take advantage of the float), now I'm glad we don't. I didn't realize how different the liability could be. Yipes...
Years ago when we were issued debit cards automatically, we made the bank take them back and reissue us old style ATM only cards. Didn't like the direct debit feature on our account!! And the credit cards offered so much more protection, not to mention the float, and now the nice cash reward features.

With the new PenFed checking, I am accept ending the VISA check card but I plan to leave that account limited in deposits and only use the card if needed while traveling - funding the account for that purpose at the time of travel. Not sure if it will turn out to be that useful anyway - we'll see.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 12-20-2013, 06:43 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
Originally Posted by audreyh1 View Post
Years ago when we were issued debit cards automatically, we made the bank take them back and reissue us old style ATM only cards. Didn't like the direct debit feature on our account!! And the credit cards offered so much more protection, not to mention the float, and now the nice cash reward features.

With the new PenFed checking, I am accept ending the VISA check card but I plan to leave that account limited in deposits and only use the card if needed while traveling - funding the account for that purpose at the time of travel. Not sure if it will turn out to be that useful anyway - we'll see.
I wonder if we could still have an ATM only card? I never asked. Good thought.

Though we keep very little in checking anyway, so the liability for us is very limited.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 12-20-2013, 06:47 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,463
Quote:
Originally Posted by Midpack View Post
I wonder if we could still have an ATM only card? I never asked. Good thought.

Though we keep very little in checking anyway, so the liability for us is very limited.
At BofA you can. My old ATM card had expired and they didn't send me a new one (they had sent my husband one). So I called, and they tried to talk me into a debit card instead, but they did issue me just the ATM card.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 12-20-2013, 06:50 AM   #19
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,445
There is one other difference between the consumer liability of a fradulent charge on a credit card vs a debit card. On the credit card one registers a dispute and is then under no onligation to pay while the dispute is investigated and resolved. A debit, on the other hand, is money already withdrawn from one's account. The financial institution has an obligation to temporarily return the funds pending investigation, but a week without the funds is easy to imagine, and could be much more if the bank feels the withdrawals were in some way authorized.

From the FDIC. FDIC: FDIC Consumer News Fall 2009
Quote:
In addition, with transaction errors, banks have up to 10 business days (and in some cases 20 business days) to promptly conduct an investigation after receiving notice from the debit cardholder. If more time is needed, typically because of special circumstances, they can take up to 45 days (and in some cases 90 days) to investigate, but they generally have to credit the consumer’s account for the amount of the alleged error on a "provisional" (temporary) basis pending the outcome of the review.

"Until the bank provides provisional credit, you could temporarily be out of pocket for the amount in dispute," said Richard Foley, an FDIC attorney who specializes in consumer issues. "This would not typically happen with a credit card because consumers can withhold payment of the amount in dispute."
FTC consumer protection Lost or Stolen Credit, ATM, and Debit Cards | Consumer Information
__________________
MichaelB is offline   Reply With Quote
Old 12-20-2013, 07:06 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,463
Yep! A biggie!
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 06:41 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.