The more we talk about the use of credit cards in class, the more I realize how easy it could be for someone to illegally use another person's card. I took special notice every time I used my credit card this past week to see whether the cashier would attempt to verify my identity. Of the five times I used my card, only once did a cashier make that attempt (this happened at Martin's when the cashier asked to see my ID as well). Interestingly enough, it does not even appear to be what store you go to that affects whether or not you will get asked for verification, as a separate time I went to Martin's I was not asked.
Even more scary is the fact that, of the five times I used a credit card, three times I swiped the card myself. This means that a criminal could have easily used "white plastic" (a plain card with nothing but a magnetic strip) if my card was ever "skimmed." The use of white plastic also occurred in the TJX case we studied. The cashier would never even notice that the card was fraudulent, which should be easy to spot, because the criminal would be able to swipe the card himself or herself.
Once again, it appears that the biggest risk in information security lies with human error. The technology is all there, and it works. However, it is when people are either too careless or too lazy to verify a persons identity that puts people at risk for fraudulent charges. The only reassuring news is that it is the business itself or the bank that will ultimately pay should the fraudulent charges occur.
Monday, October 5, 2009
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I think this is a really good observation. Stores that don't check for identification or authentication on credit cards are at risk for fraudulent behavior. One conflict to consider here is that people get frustrated with having to pull out and show their I.D. to the cashier because if you are the correct card holder then it get annoying having to pull out both, especially if you are in a hurry.
ReplyDeleteIf only people really understood the depth as to why stores are doing these techniques then maybe they would make it habit to pull out both at the same time. To ensure the safety of their credit cards this step is absolutely necessary. Maybe people wouldn't be reluctant or bothered by the extra 10 seconds that it takes to show identification if they were aware or constantly reminded of the seriousness of the problem.
I have also not been asked for my I.D. in...... probably over a month, and I have used my credit card at lest 20 times. I am personally, sometimes glad they don't check because when I buy groceries I used my father's credit card, and if they checked, they would know that my name is not Ronald and deny me (which I am glad they don't). But, one good thing that I just noticed at the 7Eleven, when buying gas and using the credit card swipe at the pump, it asks for zip code to confirm the original location of the credit card (I'm from Texas, the bank I got the card from is located in Texas so I would type in the zip from home).
Regardless, unless people really get it into their heads that clarifying a person's identity to secure their credit is worth the hassle, people simply don't want to be slowed down by the extra procedure. I think it's worth it, but I still don't like showing my I.D. So again, human laziness takes over.
I don't even think it's an extra hassle to show an ID. You are already reaching into your wallet for one card, if IDs were asked for on a regular basis, people would just automatically pull out their credit card and driver's license at the same time. It is because it is not done on a regular basis that people even get aggravated when they are asked for ID.
ReplyDeleteI've often wondered how much of this ID checking is lack of store policy vs. clerk laziness. You said you have had different experiences in Martin's. I would think that if someone ever asked to see your ID, it must be store policy. So does that mean when you weren't asked, the cashier was breaking the rules?
At least credit card companies reimburse fraudulent charges. I am even more worried about using my debit card now. Technically, the card needs a pin, but half the time I use it, it is used just like a credit card.
Like we talked about in class, half the time that you sign off for a card its electronically. This means that it just looks like a jumbled mess anyway. The other day I went to home depot and paid with a credit card. I was actually shocked when the cashier asked for my ID. I asked why and her reply was "to match the signatures." This reassured me somewhat that Home Depot is concerned with credit card fraud. What disappointed me was that when she did finally give back my ID she said "eh the signatures are close enough." Let me tell you, they were not close at all. The signature that was on the electronic scanner was just a bunch of scribbles. What does this show me? It seems it doesn't matter if cashiers even look at the signature and compare. I could have had a fake ID and it seems she still would have assumed the signatures were "close enough." It's disappointing that even when companies try to protect the safety of their customers, their employees don't follow up.
ReplyDeleteI find it very frustrating that cashiers from a variety of stores do not ask for ID. Personally, I use a debit card, but I am even terrified of using that now like TGMP said. Even though I have a PIN number, numerous stores charge the account as credit instead of debit. Therefore, if a person stole my debit card, they would not need to know my PIN number in order to make a purchase. Also, I once gave my license to the cashier along with my debit card, and she responded, "I don't need to see that." Because she said that, I no longer pull out my ID along with my card.
ReplyDeleteBut back to the credit card topic, I thought it was necessary for a cashier at any store to check ID along with the credit card. Apparently, I was mistaken. I believe every store should make it mandatory that their cashiers check ID along with the card (whether it be credit or debit) being used.
One thing that I have tried that has worked relatively well for me is instead of signing the back of my credit card I write "SEE ID" where you would normally put your signature. I think that several times this has made a cashier check my ID when they may not have otherwise. Unfortunately even blatantly writing "SEE ID" on the back of my credit card doesn't prevent cashiers from neglecting to check it. I think a really good point was made in the original post about scanning your own card too. With the exception of self check out, swiping your own card hardly saves any time. It seems like the advantage of gaining maybe an extra second or two with this technology is not nearly worth the risk when you consider how easy it makes the use of "white plastic".
ReplyDeleteI really feel bad for the banks. They are forced to loose money every time these incidents go wrong. With all the fraudulent situations that go on, how in the world do they still have money. Im sure this was another reason beside the greed of banks that caused many of them to file bankruptcy. Probably not as much but it sure seems like it helped some. They are the major insurance companies in this situation and they must back up everyone who fails to be responsible. Whether it is because of the lack of people being responsible or not, they loose loose loose. Poor banks :(
ReplyDeleteDon't feel too bad for the banks. You're the one paying for it. Hence the 24% interest rate on your credit cards.
ReplyDeleteI wonder what would happen if we eliminated cash. I understand that it would be impractical in certain circumstances, but so many people rely solely on their credit cards and debit cards. If cash was eliminated, I feel like they would have to implement some type of standard verification system.
ReplyDeleteI also had an occurrence recently where for the first time in a long time I was asked to show further proof of identity. I mentioned to the cashier about talking about the subject in a class. I think that it's good to point it out to cashiers because it reinforces the good behavior and encourages them to keep doing it. When I look at the situation now, I might be slightly frustrated if I was in an absolute hurry, but really the tiny amount of time really wouldn't bother me, especially if it was a practice that always took place. It seems to be more a matter of just trying to build a habit. I just wish businesses would enforce/encourage it in a better way.
I think this has become a huge problem for everyone in our country mainly because we as Americans are extremely lazy. In Europe, they are very strict on monitoring credit card fraud and identity fraud. For example, when I went to London, the cashier looked at my signature on the receipt and credit card, and told me that she needed to see ID because I signed it extremely sloppy. I can't remember the last time someone even looked at my credit card signature let alone check the receipt to see if it matched. We as a whole have to do a better job at correcting this problem. Likewise, we continue to try and make every process faster. Now we have credit card swipe machines and pin pads outside of the register so that the customer can do it themselves. This has probably been the reason that cases such as TJX have become more of a problem than they needed to be. For that reason, I think it is everyone's fault, and as a result of our consistent need for fast and speedy operations, we have made ourselves more susceptible to crimes such as credit card fraud.
ReplyDeleteOne way to help make sure that cashiers check you id is to write "request ID" on the back of your card rather than sign it. So many people just sign sloppy to get it out of the way because it is a hassle but my mom writes this on her cards and it works for her. They always ask to see her ID. This only occurs when the casher actually looks at the back which probably doesn't happen often. I agree with the comments that say that the problem we have is human error. People are naturally lazy. That's the bottom line and until stores start to force their employees to monitor this more often by checking signatures and ID this will continue to be a problem.
ReplyDeleteThroughout the posts, the consensus seems to be that individuals, especially Americans, are too lazy to concern themselves properly with credit card security. After some of the things I have learned in this class, it has become more and more evident to me that crooks are developing new techniques to commit fraud and, therefore, all available precautions must be taken to prevent these crimes.
ReplyDeleteThat being said, I worked in a restaurant as a server this summer and I am definitely guilty of not paying enough attention to credit card security. On several occasions, I encountered credit cards with "See ID" on the back of them and not once did I ID the customer. I attribute this to nothing but laziness. However, because of what I know now, I would act differently in that situation. I believe that educating people of the dangers involved in not monitoring credit cards would significantly increase Americans' concern, as it has mine.
I hate to burst everyone's bubble on the "SEE ID" issue, but it's actually not a very effective practice. First, as you've pointed out, cashiers rarely look at the signature panel on the back of a credit card and, even when they do, rarely actually ask for ID when cards say "SEE ID". Second, this practice actually invalidates your credit card, which must be signed for it to be used. Finally, the terms of merchants' agreements with Visa and MasterCard prohibit them from asking for ID as a condition of the sale. This was put in place to make credit card use more convenient than cash and avoid hassling customers.
ReplyDeleteFor more information, read Should you write 'See ID,' not sign, back of credit cards?
Basically it is pretty much inevitable that scam or fraud is going to happen with credit cards. The only thing I can think of in order to prevent collateral damage to your account is to check your statements regularly or to have a text message sent to you every time your card is charged (my dad does this), and if there are suspicious charges then cancel your credit/debit card immediately before it's too late.
ReplyDeleteI wanted to know how often this sort of scam happens so I Googled it and there were tons of links on "How to Steal Someone's Credit Card Number" so I guess I could learn how to do that if I wanted to. Ha. Anyway, I ended up at the Washington Post website which responded to a credit card scam earlier this year that referenced and responded to an article written by The Boston Globe. The scam was that thieves were making 25-cent charges to a mysterious company called Adele Services, supposedly in New York. This looked legitimate enough to where people ignored the charges because of the minute amount that was charged.
The Boston Globe and the Washington Post have discussed two theories as to why this is happening. Either someone is trying to test the validity of the account in order to eventually charge large amounts to the card. The second theory is that the thief is trying to make tons of money by charging these almost unnoticeable small amounts to millions of people. Both theories are very plausible because the Better Business Bureau "speculates that the number of possible victims could be in the millions," which could be a result of people's negligence in reacting to the charges. Again, to no surprise it is human error.
Good to know.
I totally agree with this observation. I shop with my Godmother's American Express card all the time. Rarely do the store clerks ask for identification. In several occasions, when they actually do ask for identification, I tell them that I shop for my Godmother all the time and that it usually is not a problem. Usually, because I look so young, they just let me make the purchase anyway. I am sure this is not correct protocol! Now that I think about it, if someone stole my credit card, I would definitely want the stores not to accept my card as payment without the proper identification. However, as Professor Chapple stated, the technology is not the problem. Rather, it is lazy clerks that do not adequately fulfill their job requirements by demanding proper identification for all credit card purchases.
ReplyDeleteI do not own a credit card and never use one so I am not sure how it all works to be completely honest with you. Why dont the credit card companies make someone type in a pass code along with the credit cards to make it more difficult on them to steal the information. I do agree with most of you that the stealing of the credit cards relies on the person checking the card or using the card to be careful and not be oblivious to the possible threats there are to the security of their credit information. I think that we should go more with the approach as was said in the brief movie we saw in in class saying that the credit cards should be liable for the information on the cards not the stores. There are too many stores and employees that accept credit cards to make it a policy of the company and to keep tabs on it when checking out. I think that this will be a problem for a long time because it is such a delicate issue and humans are lazy to say the least.
ReplyDeleteI don't have a credit card either (although after some of our discussions in this class, I plan on getting one very soon), but I agree that having a pin for a credit card seems like a good idea. That probably wouldn't work for online usage very well, but at least for in stores, it would be an added protection. Of course we've already talked about how week a code a 4 digit number is, but at least it would be a start.
ReplyDeleteAll of the ladder comments are very interesting and definitely correct. Despite this, I truly believe there will never be a way to prevent credit card fraud from happening. If technology is created by a person, it can be hacked by a person. I don't feel there will ever be a perfect block on credit card hacks but I do believe that nearly all these criminals will get caught. One thing about stealing money is that you will continue to do it until you get caught. With present day cameras and security, eventually someone who continues to use fake credit cards will be tracked down and charged ridiculous fines. Credit cards were created to make buying easier. People now carry credit cards just because they are too lazy to bring cash and carry around change. Adding more precautions to credit card usage will defy the original lazy purpose. I hope that one day it will be impossible to hack credit cards but, until then, only the person who uses the credit card can be responsible for what happens to it.
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