 |
|||||
 |
|
 |
|||
 |
|||||
For a number of recent visitors to Disneyworld, family fun and great adventures wasn’t the only thing they took with them home. More than 170 visitors to the place where dreams come true arrived home to discover an additional, unwelcome vacation souvenir: credit card charges from purchases they never made.
The 173 guests, who had stayed at either Walt Disney’s Saratoga Springs or Old Key West resorts, had fallen victim to credit card skimming, one of the fastest growing forms of credit card fraud today. Over a period of four months before the fraud was discovered, Disney hotel receptionist Ana Rosa recorded the credit card numbers of guests checking in with the help of a card skimming device. Rosa allegedly passed on the card numbers to an outside connection, in exchange for a mere $500 a month. The stolen card information was then used by the fraudsters to make purchases on existing accounts as well as to open new accounts for further fraud.
All in all, victims of the credit card scheme were defrauded of an estimated $83,000, before authorities cracked down on the fraudsters. Rosa signed a plea agreement last Thursday and will serve a minimum of two years in prison. The full extent of her sentence is to be determined next month.
The Disneyworld credit card fraud got widespread attention in the media, because it involved the high-profile family-friendly resort. However, the incidence is just one more in a growing number credit card skimming cases, a type of credit card fraud particularly rampant at hotels, gas stations, and restaurants. While Disney moved quickly to implement new security measures to protect guests, the event serves as a reminder for all cardholders that credit card fraud remains an ever-present threat, even in places that may appear as safe havens.
Credit card skimming is increasingly common, because it is profitable and easy to perpetrate. Credit card skimming gadgets can be purchased on eBay for as little as the cost of an iPod. Rosa, for example, reportedly acquired the credit card skimmer she used at the Disneyworld resorts at a flea market in exchange for $200 and four free Disney passes.
Fraudsters attach the device to gas pumps, point of sale machines, or ATMs. When unsuspecting consumers swipe their credit or debit card, the skimming device records the credit card information, and fraudsters can then use the stolen information to clone a new credit card or electronically transfer money from the victim’s bank account or credit card.
To protect yourself from the dangers of credit card fraud in general and credit card skimming in particular, never let your credit card out of sight, particularly when travelling. Every month, or preferably twice a month, check the activity on your debit and credit card for charges you don’t recognize. If you see suspicious charges, call the card issuer immediately.
Early detection of any type of fraud-related activity is essential. Credit cardholders are protected from fraudulent credit card charges if the charges are reported in a timely manner, typically within 60 days. However, for debit cards, that time window is much shorter. To be protected with a liability limited to $50, cardholders must notify the debit card issuer within two business days after discovering the fraudulent charges or learning of the theft of the card. Debit cardholders who wait longer could lose as much as $500, in some instances even more.
In addition, ATM withdrawals are generally not covered by the credit card companies’ zero liability policy, because these involve knowledge of the card’s PIN number. In short, to protect yourself, always know where your credit or debit card is, and never give out your PIN number to anyone.
