One dollar Credit Card Scam

[imported_Section8]

Edit: Not new, just recently happened to me and some friends I know. I cut and pasted this from an article I was reading.

A new identity theft scheme puts a charge of just $1 on your credit card, in what is creatively known as the "one dollar scam."

In this new scam, thieves buy hundreds of stolen credit card numbers and put a $1 charge on each of them. But the next step in the scam that really earns the crooks some cash.

Should you be one of the unlucky hundreds of cardholders who ends up with a dollar charge, and then doesn't notice it, the next month the thieves will bill thousands of dollars of merchandise to your credit card.

Me and several other people I know had one of these charges. We caught it. Be sure to check your statements or online accounts often and question any charge, even one cent.

 

[nakedfrog]

Many times a charge is pre-authorized for one dollar by valid vendors before the actual charge goes through.

 

[ShotgunSteven]

I didn't get a $1.00 charge, but I did get a random $9.99 charge on a card right before I made my final payment on it. It kind of leaped out at me, since I hadn't made any charges to that card in ages.

 

[Maximus96]

Originally posted by: ShotgunSteven
I didn't get a $1.00 charge, but I did get a random $9.99 charge on a card right before I made my final payment on it. It kind of leaped out at me, since I hadn't made any charges to that card in ages.

no need for those 'services' when the free stuff is everywhere...

 

[Capt Caveman]

Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

 

[Mr Pickles]

Originally posted by: nakedfrog
Many times a charge is pre-authorized for one dollar by valid vendors before the actual charge goes through.

Yeah lets not jump to paranoid conclusions just yet. To make sure your card is legit, a lot of businesses will charge one dollar to it ahead of time and then make the full charge later on. The last time this happened to me I was buying a keg at albertson's and before my deposit was on there it showed a 1.00 charge.

 

[ShotgunSteven]

Originally posted by: Maximus96

Originally posted by: ShotgunSteven
I didn't get a $1.00 charge, but I did get a random $9.99 charge on a card right before I made my final payment on it. It kind of leaped out at me, since I hadn't made any charges to that card in ages.

no need for those 'services' when the free stuff is everywhere...

Huh?

 

[imported_Section8]

Originally posted by: Capt Caveman
Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

We could make it harder on the crooks even if we are not initially liable. At some point someone has to pay.

 

[Mr Pickles]

Originally posted by: Section8

Originally posted by: Capt Caveman
Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

We could make it harder on the crooks even if we are not initially liable. At some point someone has to pay.

I think you're freaking people out for no reason dude. We're fine.

 

[imported_Section8]

Originally posted by: MrLee

Originally posted by: Section8

Originally posted by: Capt Caveman
Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

We could make it harder on the crooks even if we are not initially liable. At some point someone has to pay.

I think you're freaking people out for no reason dude. We're fine.

To those with a low freak threshold, please disregard. And now we return you to Leave it to Beaver, already in progress.

 

[Auric]

Originally posted by: Capt Caveman
Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

Indeed. Seems like the type of misinformed nonsense with which old ladies virally spam their email contacts. ID theft is totally unrelated but gives it that oh-so-current local news flair. A little knowledge truly is a dangerous thing.

 

[JeffreyLebowski]

Originally posted by: Section8

Originally posted by: Capt Caveman
Not catching a one dollar charge is one thing but I don't see how someone isn't going to catch thousands of dollars in charges they didn't make. Plus, most credit card companies catch this pretty quickly. Either way, you're not liable for the charges.

We could make it harder on the crooks even if we are not initially liable. At some point someone has to pay.

You are correct in that. We all pay for this crap. The individual may not be liable, but either the credit card company eats the cot and passes it on to everyone in higher interest rates, or the vendor eats the cost and passes it on to everyone in higher prices.

The moral of this thread should be just watch for suspicious activity on your credit cards and bank accounts. Tis the season that we all just swipe plastic and go. There are lots of transactions and one erroneous one could slip by you and cost you $$$ down the road.

 

[bsobel]

Originally posted by: Section8

A new identity theft scheme puts a charge of just $1 on your credit card, in what is creatively known as the "one dollar scam."

In this new scam, thieves buy hundreds of stolen credit card numbers and put a $1 charge on each of them. But the next step in the scam that really earns the crooks some cash.

Should you be one of the unlucky hundreds of cardholders who ends up with a dollar charge, and then doesn't notice it, the next month the thieves will bill thousands of dollars of merchandise to your credit card.

Me and several other people I know had one of these charges. We caught it. Be sure to check your statements or online accounts often and question any charge, even one cent.

This was reported in Consumer Reports in mid 2006. New eh?

"$1 CREDIT CARD SCAM

Reported and Web Produced by: John Matarese
Updated: 08/24/06 17:51:38

A warning tonight about a new scam that starts so innocently you may not notice it ... Until its too late.
Our partners at Consumer Reports magazine are warning about what's being called the one dollar scam.
Crooks buy hundreds of stolen credit card numbers, then put a 1 dollar charge on all of them.
If you dont notice the charge, the next month they bill thousands of dollars of merchandise to your card.
The thieves look for people who dont read their bills carefully."

They are just seeing which cards are good and which aren't. If it's not caught (by changing card numbers) they go on a shopping spree. Your still protected from fraud in that case by the cc vendor.

Bill

 

[Auric]

Originally posted by: JeffreyLebowski
You are correct in that. We all pay for this crap. The individual may not be liable, but either the credit card company eats the cot and passes it on to everyone in higher interest rates, or the vendor eats the cost and passes it on to everyone in higher prices.

False assumption. If the company was able to reduce fraud without hurting bidness (i.e. turning off customers) then their profits would increase. No way would that result in lower interest rates or prices. At best, those who have to pay are the shareholders in ever so slightly less profit. But not really since it is simply a cost of doing bidness which must be managed and balanced versus increased cost of security including ease of use. It is just not something for the consumer to give a second thought to. Rather they must simply confirm what they are paying and paying for the same as always with any transaction. Ergo, no story here.