I learned a very powerful lesson Monday, and that is that anyone can become a victim of credit card fraud. Someone obtained my Visa CheckCard number and used it to buy ~$5000 worth of stuff throughout Mexico and South America. The charges started happening on Thursday of last week, and the bank didn’t call me until Monday when I had to ask them to block any further charges. I’m still trying to figure out how/why they spent US$25 at McDonald’s though, maybe all that spending made them really hungry!
Upon further questioning, I was able to find out that my credit card number was probably lifted from one of any number US-based merchants that illegally store credit card numbers when purchases are made. Among the examples I received were Wal-Mart, Sams Club, and DSW Shoes. Every time you use a card at one of these locations, they store it attached to your purchase (ever notice the barcode at the bottom of those receipts that make returns easier?). It’s such a big problem, in fact, that Visa has launched a lawsuit against the aforementioned merchants and others. I’m not sure why, because it is actually the banks who pay for the insurance policies that restore stolen funds.
In the end, the bank is working to restore the money, and so far have replenished ~$1500 or so. Hopefully the rest will come back in before rent is due!