Thursday, September 18, 2014

Credit cards with chips are open for fraudulent activities.

The requirement for a signature for paying with a credit card with a chip has been abolished.

This  will leave us undoubtedly open for fraud and theft as one can now get up to $100.00 from a credit card that has a chip. This is sheer unmitigated foolishness, in my opinion, and takes away the security of the card. 

However, the signature option wasn’t a hundred percent secure as the signature had to be on the back of the card and could easily be imitated, but it was safer than what we have now. 

Here is a case in point.
A friend told me that the son of his friend took his father’s credit card and withdrew several times hundred dollars. When his father discovered the substantial withdrawals on his bank statement some weeks later; he said, “I’m going to the police”. His son then admitted that he was the culprit using his father’s credit card. One has to wonder what the relationship is between this two now.

The father rang the bank and was told that under normal circumstances they would refund the “stolen” money, but since it was his son that took the money they can’t refund it. In other words, stealing from parents is not deemed stealing according to the bank.

Surely, this loophole has to be closed as anybody can use my credit card if I lose it or it gets stolen – there is no credit card security anymore. 

Just imaging that somebody is withdrawing a hundred dollars every day; from your account, and by the time you would get the bank statement that could amount for a very large amount. So, make double sure that you put your credit card back into a safe place after using it. Without a signature it is now open to theft.

Please circulate this posting to make other aware of this problem.  Make a comment if you wish, but anonymous comments will not be published.

 My thought for today. - Werner
There is honour among thieves. Proverb

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