Charged for a $2,800 SCUBA Adventure? That's a Red Flag

In reviewing a recent credit card statement, I noticed that I had taken a SCUBA adventure on the Great Barrier Reef to the tune of $2,800.

A quick call to the bank and the card was canceled and fraudulent charges rescinded.

Luckily, this was a card that isn’t used often and the charge easily noticed, although I think I would have noticed that amount of a charge on any card. But it did get me thinking about how the card number was compromised. There are suspicions for the last store where the card was used, but no proof. As with many on these incidents, that where the story ends.

Stealing credit card numbers is big business. Not only the theft of the card or number but the re-sale of the data on the black market. In addition to the old-fashioned way of stealing the physical card, criminals will gladly pay people that handle customer’s cards to collect the data, either by copying the information from receipts or by employing card readers. Card readers are very small electronic devices that read and collect the card data from the magnetic strip. The devices can be smaller than the card itself and are kept out of sight; in an apron, under the counter, or next to the store’s card reader. A quick second swipe and your card data is saved. 

Think about how distracted you sometimes are at the register talking, dealing with children, or other packages. That’s all the thief needs to swipe your card. When is the one time you hand your card to a stranger and let them walk out of sight? A restaurant. As safe as you may be with your card, this is one situation that is hard for you to control.

Another popular device is the skimmer. This device is actually installed into the machine the public uses, such as an ATM card slot. The user has no idea that they are actually using a criminal’s reader.  The thief simply comes back a few hours or day later and removes the device, full of credit card data.

Once the card data is collected, it is uploaded to secure internet forums hosted by and known to criminals. Here the card numbers are posted. Members of the forum buy the numbers from the forum. Before you know it, you’re paying for a SCUBA adventure in Australia!

Business owners should be aware of their employees’ activities. Even though the employee is committing the criminal act, the business could be held accountable. Employers and supervisors can’t be with all of their employees all the time, but they can make it difficult for the employee to obtain the credit card data. Access control, register technology and card reader placement are just a few things the employer can do to limit the chances of credit card fraud.

 As a credit card user, pay attention how and where your card is swiped at the register. When using a self use device look for any attachments to the card slot that seem out of place. Pay attention to any difficulty while inserting the card.