The conjunction of technologies and the monetizing of hacking haveresulted in a web environment where no websites, legitimate or not canbe trusted.
On top of this, security pros are also tasked with dealingwith "enterprise 2.0" - the struggle between the benefits of Web 2.0and the security risks, as well as the obsolescence of traditionalsecurity technologies. View this beneficial videocast, featuring Mark Small of WebsenseInc., to learn everything you need to know about protecting yourorganization from today's Web threats, including:
A Web 1.0 vs. Web 2.0 comparison
Why traditional security technologies like anti-virus and URL filtering are not effective with Web 2.0
Why users often must bypass security policies in an effort to better the business
Best practices for creating a new approach to Web security
Chairman Frank's Bill to Regulate Internet Gambling Reaches 50 Co-Sponsors
WASHINGTON, July 28/PRNewswire-USNewswire/ -- We are pleased to report that there are now50 members of Congress signed on as co-sponsors of the InternetGambling Regulation, Consumer Protection and Enforcement Act (H.R.2267), legislation introduced by Rep. Barney Frank (D-MA), chairman ofthe House Committee on Financial Services
"Reaching this milestone illustrates that momentum isgrowing for a shift in U.S. policy and a rewrite of U.S. Internetgambling laws," said Jeffrey Sandman, spokesperson for the Safe andSecure Internet Gambling Initiative. "The list of supporters willcontinue to grow as more representatives are educated on the subjectand increasingly hear from their constituents that Internet gamblingregulation presents the only viable way to protect consumers, sinceattempts to prohibit the activity have completely failed. We alsoexpect an increased spotlight on Internet gambling as a way to augmentfederal revenues and help cover the cost of necessary policyinitiatives."
Among the bipartisan group of 50 co-sponsors are manysenior ranking representatives, including George Miller (D-CA),chairman of the Committee on Education and Labor; John Conyers (D-MI),chairman of the Committee of the Judiciary; Charles Rangel (D-NY),chairman of the Committee on Ways and Means; Edolphus Towns (D-NY),chairman of the Committee on Oversight and Government Reform; Pete King(R-NY), ranking member of the Homeland Security Committee; and Ron Paul(R-TX), vice-chairman of the Oversight and Investigations subcommittee.(A complete list of co-sponsors is included below.)
Rep. Frank's bill would establish a framework to permitlicensed gambling operators to accept wagers from individuals in theU.S. and mandates a number of significant consumer protections,including safeguards against compulsive and underage gambling, moneylaundering, fraud and identify theft. Additional provisions in thelegislation reinforce the rights of each state to determine whether toallow Internet gambling activity for people accessing the Internetwithin the state and to apply other restrictions on the activity asdetermined necessary. The legislation also would allow states andNative American tribes with experience in regulating gambling to play arole in the regulatory process. An analysis shows that collecting taxes on regulatedInternet gambling would allow the U.S. to capture much-needed revenuein an amount ranging from $48.6 billion (excluding online sportsgambling) to $62.7 billion (including online sports gambling) over thenext decade.
The following is a complete list of Internet GamblingRegulation, Consumer Protection and Enforcement Act (H.R. 2267)co-sponsors: Alaska
About Safe and Secure Internet Gambling Initiative The Safe and Secure Internet Gambling Initiative promotes thefreedom of individuals to gamble online with the proper safeguards toprotect consumers and ensure the integrity of financial transactions.For more information on the Initiative, please visit www.safeandsecureig.org.The Web site provides a means by which individuals can register supportfor regulated Internet gambling with their elected representatives.
SOURCE Safe and Secure Internet Gambling Initiative
Columbus, Ga., July 28, 2009 -- TSYS today announced that China UnionPay Data Services Co., Ltd. (CUP Data), TSYS' joint venture with China UnionPay (CUP), has signed five new long-term bankcard processing agreements, and won several major domestic and international awards during the last six months.
The new agreements include credit card processing contracts with Yaodu Credit Cooperative; Shandong Provincial City Commercial Banks Alliance, an alliance of 14 city commercial banks; Yunan Rural Credit Union and Guangxi Beibu Gulf Bank. The new agreements also include a prepaid processing contract with KargoCard, a Malaysia-based retail marketing company that will be introducing innovative stored-value and reloadable gift card programs to retail brands and merchants in Asia.
In February of this year, three systems owned by CUP Data were all recognized as "Most Excellent Software Products" by the Shanghai Software Industry Association. These awards fully demonstrate that CUP Data is one of the most sophisticated, flexible and adaptable third-party payment providers in China. Systems mentioned in the awards included CUP Data Issuing System Software V1.0, CUP Front-end Interface System V1.0 and the CUP Data Customer Services System V1.0.
In May, the debit card project CUP Data implemented for Citibank won "Best Retail Payment Project Award 2009" from Asian Banker for its outstanding integration of the bank's debit card technology infrastructure with the processing system of CUP Data. The publication cited the collaborative approach, which enabled Citi China to "enhance banking experience and convenience by providing customers with access to ATM and POS facilities, as well as mobile payment capabilities." Asian Banker also highlighted that Citi China was the first foreign bank in China to offer debit and mobile payment services, which increased "customer satisfaction, loyalty and cross-selling prospects for the bank."
"While the Chinese financial industry has remained relatively stable during the current economic crisis, we believe that now more than ever, it is important to bring reliability, agility and innovation to the clients we serve," said Yan Fang Wang, president of CUP Data. "We help our clients thrive through the excellence of our technology, the expertise of our people and the dedication of our services."
"CUP Data is not only recognized as the strongest outsourced payment solutions provider in China, but also as one of the best bank IT service providers in the Asia Pacific Region," said David E. Duncan, managing director of TSYS Asia-Pacific.
"CUP Data has signed ninety-six percent of the banks in China that have outsourced the processing of their credit cards, including three of China's largest banks, China Minsheng Bank, Industrial Bank of China, and China Postal Savings Bank," said Gaylon Jowers, president of TSYS International. "CUP Data also processes for Bank of East Asia, the first foreign bank to issue credit cards in China."
About CUP Data
China UnionPay Data Services Co., Ltd. (CUP Data) is China's largest third-party processor of bankcard payments providing transaction processing, disaster recovery and other services for issuing banks in China. CUP Data was established in 2003, and has signed more than 60 credit-, debit- and prepaid-processing client banks at year-end 2008.
TSYS owns a 44.5-percent equity stake in CUP Data, a subsidiary of China UnionPay (CUP). CUP is the only payments network sanctioned by the People's Bank of China, China's central bank, and has become one of the world's largest and fastest-growing payments networks.
About TSYS
TSYS (NYSE: TSS) is one of the world's largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, debt management, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information, contact news@tsys.com or log on to www.tsys.com . TSYS routinely posts all important information on its website.
Think tank to draw up new ID theft prevention tactics
Published:29-July-2009-By Kevin White
Merchants ID Theft Board on how to fight fraud
A diverse group of expert volunteers including executives from US financial institutions, legal firms, software suppliers and law enforcement agencies, have come together to form a group that aims to show how ID data breaches can best be stopped.
The FBI, computer products distributor Avnet and SSL certificate authority GoDaddy.com are a few of the names of interests to be represented in the Merchants ID Theft Advisory Board.
The Board was created to tackle what it refers to as the ‘epidemic of ID theft’ with as many as nine million cases registered annually and an estimated 262 million ID records reportedly stolen since 2005.
In the UK CIFASthe UK’s Fraud Prevention Service views online fraud as one of the highest priority threats during the current climate. Figures from APACS show that card not present fraud, which includes phone and mail order frauds as well as internet transactions, amounted to £328.4m in 2008, a 13% increase from 2007.
It judges that there has been an overall increase in successful identity frauds with CIFAS members, which include businesses that are spread across banking, mail order, insurance, savings and investments, telecommunications, and share dealing, recording a 5.7% increase during 2008.
ID theft gangs are seemingly often months ahead of law enforcement with new tactics. “The Board plans to try and level the playing field by getting effective prevention knowledge and methods out rapidly and frequently,” it said.
A first response will be production of a sophisticated and up-to-the-minute best practices guide in the prevention of ID theft and data breach events.
CIFAS reckons account takeover has seen the sharpest rise of all fraud types with a 207% increase recorded in 2008.
Plastic cards, bank accounts, mail order and telecoms are particularly vulnerable, as fraudsters obtain account information in many ways, with phishing being one that has largely entered the public consciousness.
Smishing, where an attack comes via SMS text message which banks and other financial services providers increasingly use to contact customers, is a new threat that is not so well-known and potentially represents a profitable line of attack for fraudsters. Interestingly, CIFAS reports that the scarcity of credit being offered currently means that fraudsters are attempting to create creditworthy fake identities, which is further driving up the number of successful identity frauds.
The Merchants ID Theft Advisory Board believes most data breach events occur through social engineering including current and former employees and vendors who are often part of criminal networks.
The new group includes professionals from AZ Federal Credit Union, the law firms of Bryan Cave, Hudson Cook and Charles & Associates, the FBI, GoDaddy.com, Go Media, Avnet, Forensic Consulting Solutions, NXG Strategies, nd Merchants Information Solutions.
Editor's Note: Another benefit to online banking institutions is that HomeATM provides same day (in fact, "real time") online bill payments which saves on stamps, late fees, etc. That must be a big deal because Western Union and Wells Fargo have teamed up to provide that service to their customers. Here's there press release:
Wells Fargo is First Major Financial Institution to Offer Customers Expedited Payments to Merchants
Press Release
Source: Wells Fargo & Company
PIN Payments News Blog
SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE:WFC - News) today announced the nationwide availability of its newest online bill pay feature, which allows customers to make “just in time” online bill payments to merchants, such as utility, auto finance and mortgage companies. The service helps customers avoid missing payments or making late payments.
According to Javelin Strategy & Research, nearly three out of four consumers initiated expedited payments last year and use is expected to continue to rise in the next five years.
“The launch of same day payments further highlights Wells Fargo’s commitment to listening to our customers and continued leadership and innovation in the online space,” said Adam Vancini, senior vice president of Wells Fargo Internet Services Group. “Our customers continue to discover the convenience and speed of paying bills electronically; the expedited payments service is an additional online bill pay option.”
Currently Wells Fargo offers same day payment options for a fee with a select group of payees; additional payees continue to be added on an ongoing basis. Wells Fargo teamed up with Western Union for the service.
“Western Union is pleased to join an industry leader like Wells Fargo to provide expedited bill payment,” said Ranjana Clark, executive vice president, Global Payments and Global Strategy. “Through its Global Payment Services division, Western Union is an expert in connecting consumers with billers. We understand that under current economic circumstances, consumers are managing their budgets more closely than ever and are looking for options that allow them to pay bills quickly, conveniently and without incurring costly late charges.”
Wells Fargo integrates customers’ bill pay data with optional online tools, such as its online budgeting tool: My Spending Report with Budget Watch and archiving service Wells Fargo vSafeSM.
Wells Fargo’s bill pay service presents bills online for nearly 460 merchants, lenders and other billers.
Wells Fargo’s online and mobile bill pay alerts give customers more control by notifying them when bills arrive, if a bill didn’t arrive, when a bill is due, when a payment is sent, among other notifications.
With Wells Fargo Mobile, bill pay customers can schedule payments and pay bills with their mobile device while waiting in line, on a break, or anywhere else they want to access the mobile web or WF.com.
About Wells Fargo Online & Mobile Banking
Wells Fargo is a leading provider of online and mobile financial services for individual consumers, small and middle market businesses and large corporations with a full range of banking, money movement, investing, asset management and other financial and risk management products. Wells Fargo launched its personal computer banking service in 1989 and was the first bank to offer Internet banking through wellsfargo.com in May 1995. Since January 2009, Wells Fargo has been named the No. 1 Consumer Internet Bank in the United States by Global Finance Magazine, ranked the No. 1 website out of 68 leading U.S. corporations' websites for technology innovation by the Brookings Institution and was awarded two Monarch Innovation Awards by Barlow Research for online services for small business, including Foreign Exchange Online and My Spending Report with Budget Watch.
About Wells Fargo & Company
Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.
Contact:
Wells Fargo & Company Andrea Mahoney, 415-222-4722 (Media)
It's earnings season for the major card companies again. Later today at 5 PM Eastern,Visa will be announcing financial results for its fiscal Q3. Tomorrowmorning, MasterCard will be announcing financial results before themarket opens at 9 AM Eastern.
Rob Reeg is president of Global Technology and Operations for MasterCard Worldwide. And here's his op-ed piece covered by St. Louis Today.
Credit card transactions benefit both merchant and customer
BY Rob Reeg
07/29/2009
Going shopping these days, whether for a new TV or a mid-day snack, isa lot simpler and faster than it used to be. No need to fumble throughyour pockets, looking for change, or search for an ATM when low oncash. It's not often that we're stuck in line behind someone writingout a check. No need to load up on cash when traveling. Now, we justpull out a card, swipe it or tap it, grab the purchase and go. It'squick and easy. And, best of all, consumers win and merchants win.
But that win-win proposition is being threatened by a group ofmerchants who have decided that they don't like the current arrangementwhere you get to choose how you pay for the things that are importantto you. These big retailers are lobbying Congress to change the rules,and you could end up paying their bills. Merchants benefit when youmake purchases at their shops, but should they tell you how to pay?
The success of a merchant such as 7-Eleven comes from offeringconsumers choice and convenience. For 7-Eleven, the drive for consumerconvenience led to them becoming one of the first to adopt aninnovative way for you to pay, MasterCard's tap-and-go technologyPayPass, where you pay with a key fob or, soon, your mobile phone. Noneed to even sign a receipt.
When 7-Eleven jumped on the contactless bandwagon in 2006, a companyexecutive said that PayPass "... enhances our customers' shoppingexperience by offering speed and convenience when paying at 7-Eleven."The company also acknowledged that paying with technology has a cost,as another executive said at that time: "The expense can be worthwhile,because the average 7-Eleven card transaction is 20 percent to 25percent larger than a cash one, and there are fewer security-relatedcosts to accepting cards."
The bottom line is that it's a good deal for a merchant like 7-Elevento accept payments from consumers on cards. MasterCard and otherpayments networks continue innovating, bringing new convenience forconsumers, while 7-Eleven's sales grow and their franchises expandglobally. Sounds like the small cost merchants pay to accept a paymentcard is more like a smart investment, rather than a fee.
But while merchants, including 7-Eleven and stores like it, profit fromthe convenience of payment cards, they are working hard behind thescenes with a glossy multi-million dollar campaign in Washington topush for a new law that would shift the fees for using a card ontoconsumers while merchants keep the benefits, and the profits. But don'ttake my word for it — ask 7-Eleven. In a recent New York Times article,Long Island 7-Eleven franchisee owner Patricia Orzano said that thecredit card fees cut into her profit. It was a rare moment when honestycut through the rhetoric.
No matter how loudly the merchants claim the mantle of "Protector ofConsumer Interests" on the fee issue, the unintended consequences wouldbe a triple whammy on consumers: less convenience, higher costs andreduced consumer choice.
How do I know? Because we know what happened in Australia, where thegovernment mandated card acceptance fees. Rather than passing along thesavings to their customers, merchants pocketed the funds.
We know for sure that consumers there now are paying much higher ratesto use their cards and receiving fewer benefits, while there is noevidence merchants reduced any prices. Cutting acceptance fees was aboon for merchants, but it harmed consumers. There's little reason toexpect the outcome would be different here. Many in Congress are askingwhy merchants are looking for legislation that does nothing to protectthe interests of the consumer.
The bottom line is this: Electronic payments systems are a win-win foryou and for the merchants you visit. They increase sales and increaseconsumer satisfaction, and lawmakers should consider the full picturebefore rushing to legislate harmful price controls.
Congress should act in the best interests of consumers by rejecting the merchants' anti-competitive legislation.
One in Five Hit by Card Fraud in Past Five Years: ACI Worldwide Survey
HALF (49%) Would Consider Changing Banks Following Card Fraud...22% "Would" Change Banks!
Editors Note: Wow, if I was a financial institution offering "online banking" that headline would haunt me 24 hours a day until I figured out a way to either change it or use it to create an opportunity for my online bank to flourish.
My first thought would be: "If 50% would consider "changing banks AFTER" they get hit by card fraud/online banking/phishing fraud, how many would consider "changing banks" to "AVOID" getting hit?
And to which competitor would they go?
I'd conclude that if they "left because of insecurity" they would probably "come on board BECAUSE of security."
So if I wanted to open a portal for dissatisfied online banking customers, I would use a uniquely positioned product to ensure my customers security. I'm thinking Swipe vs. Type here. Then I would think...how many potential customers could my bank procure by "guaranteeing" online security? Research would determine if it was millions or only "Hundreds of Thousands." I think I made my point. If not, then there's always this:
"Fraud reduction is one area where financial institutions are able to take decisive and positive action to reduce losses and enable them to protect their image and retain the trust of their customers."
Protect Your Customer...in fact "Enable Them"
Protect Your Image...in fact "Enhance It"
Considering the drastic rise in cybercriminal activity, especially activity aimed at financial institutions, I would think that the key to any online banking branding strategy would be about protecting the customer from phishing and malware and protecting, better yet, enhancing the financial institutions image. Those two principals should drive any strategy.
Since banks cannot control whether their customers visit a malware infested website, they have to find another way to protect both themselves and their customers from malware. The "other way" is to require their customers to Swipe vs. Type. As I've said in the past, two of the three steps are already done by the bank. They issue the card, they issue the PIN, the last remaing issue is a device that reads the card and the PIN. The best choice is a PCI 2.x certified PIN Entry Device designed for eCommerce use.
It's the fastest and familiar way to securely authenticate their user and by eliminating "typing" you eliminate the threats from malware and phishing. These days, it's all about security. The web is NOT secure. Therefore financial transactions need to be conducted "outside" the browser space.
However, for the sake of argument, let's assume those principals are not adhered to. Assume that banks are willing to take the risk that their clients' online banking information will get phished, that it's "just a cost of doing business." The game has changed. When 50% of consumers say they might change banks if they (or somebody they know) experienced card fraud it's not just about phishing anymore. It becomes a much more serious problem.
I would think that banks might be less willing to take on the risk that half of their customers will jump ship. That very real threat is one that HomeATM can eliminate as well. We don't operate within the browser, we operate without. We simply utilize the Internet as the "conduit" whereby the encrypted cardholder information is channeled. It cannot be unencrypted until it reaches an HSM.
Phishers can't phish if consumers don't type. If online banking consumers are going to switch banks anyway, why not have a strategy to "swipe them" off their feet?
I have to seriously ask...when will a bank "connect the dots" and offer their customers the only PCI 2.x and TG-3 certified personal e-banking log-in device in two hemispheres. It is a no brainer. Guarantee their security.
What is the guarantee? That your customers data is safe and therefore your customer is safe.
Our device would render phishing useless by requiring secure 2FA login (swipe card/enter PIN) With our device it doesn't matter what malware is on the computer, it wouldn't be able to steal username/password data because that data is NOT typed in anymore. It might very well still be on the PC, but it's no longer used for logging in. Typing has been eliminated and without typing, the bad guys can't steal your customer's card numbers. Eliminate typing and you also eliminate the threat of keyloggers, cloned bank websites, counterfeit cards AND losing your valuable customer to a competitor.
Two factor 3DES DUKPT End to End Encrypted PCI 2.x and TG-3 Certified Military Grade security... used for securing online banking log-in, money transfers, conducting more secure online transactions and thus enhancing your bank's image...all for $12 a pop? Yeah...So get ahead of your competition by simply connecting the dots! Your almost there...2 outta 3 ain't bad, but 3 outta 3 is better.
NEW YORK, July 28, 2009 (GLOBE NEWSWIRE) -- ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of electronic payments software and solutions, today announced that its global card fraud survey revealed that 18 percent of consumers questioned have been victims of credit or debit card fraud in the past five years.
The research, of more than 2,400 consumers across eight countries, also found that if an individual or someone they knew was hit by card fraud, 22 percent would change financial institutions, and a further 27 percent would consider changing financial institutions.
In the light of these findings, and the continued commitment by financial institutions around the world to protect their customers from card fraud, ACI Worldwide has launched its Guide to "Stopping Card Fraud in its Tracks," with contributions from Nationwide Building Society, to provide advice to fraud managers in banks to help combat card fraud and protect their customers.
Editor's Note: In the US and UK 27% or 1 in 4 people have been toasted by card fraud. Replace the toaster with a PCI 2.x certified PED. And give them away! Cause you care! The money will come! In fact, last time I checked (in April) the American Bankers Association said:
“Banks that demonstrate a keen understanding of customer needs and put forth capabilities that align with them can differentiate themselves from competitors, command higher pricing, and become the provider of choice for deposit-rich market segments. Successful banks will develop programs that demonstrate industry understanding, critical product capability, and communicate commitment.”
Slide 4
The survey highlights some wide variations in fraud trends around the world. In the US and UK, 27 percent of respondents have been hit by card fraud in the past five years, compared to only seven percent in Dubai, eight percent in Germany and 15 percent in Australia, China and Singapore.
When it comes to customer attitudes to card fraud, a fifth of the respondents said they are not confident their financial institution can protect them, with this number rising to over a third in China.
What's more, almost half of respondents said that they would change banks, or at least consider it, if they or someone they knew was hit by card fraud.
Editor's Note: Okay, now if I'm in the banking industry and I read this, I wouldn't be haunted anymore. I would be excited. Because I would see a HUGE opportunity to capitalize on these consumer behavioral attitudes. If Half would change banks (even if it was just someone they knew who was hit by card fraud) that means I have the opportunity to "lure" them to my financial institution.
Did I just say lure? I did. You can "Phish" for online banking customers by eliminating...phishing.
HomeATM's Online Banking program would would keep banking customers safe and secure and attract dissatisfied customers who leave their banks. It's simply a branding strategy. You brand your bank as the most secure online banking system available. And you secure it with a PCI 2.x and TG-3 certified system. And you "give them away" with a smile on your face. Because it empowers you, protects your customers, enhances your image and will make you money!
Pete Corrie, head of financial crime at Nationwide Building Society, comments: "The number of card payments globally has increased drastically over the past few years and, consequently, the whole industry has seen associated fraud levels go up.
David Nussenbaum, vice president and product line manager at ACI Worldwide, adds: "The international research we have conducted shows that although card fraud trends vary around the world, it is still a persistent problem for banks. In order to protect themselves and their customers against potential fraudulent attacks, financial institutions are looking for ways to implement effective anti-fraud strategies, while maintaining efficiency and keeping costs to a minimum. We believe that our Guide will provide some useful and practical advice."
The ACI Worldwide research on card fraud was conducted during July 2009 in Australia, Brazil, China, Dubai, Germany, Singapore, the UK and the USA surveying a total of 2,408 respondents. To download the ACI Worldwide Guide to 'Stopping card fraud in its tracks', go to www.aciworldwide.com/stopcardfraud.
About ACI Worldwide
ACI Worldwide is a leading provider of solutions to initiate, manage, secure and operate electronic payments for major banks, retailers and processors around the world. The company enables payment processing, online banking, fraud prevention and detection, and back-office services. ACI solutions provide agility, reliability, manageability and scale, to more than 800 customers in 90 countries. Visit ACI Worldwide at www.aciworldwide.com.
CONTACT: ACI Worldwide
Catherine Eyres
+44 (0) 1923 812741
Catherine.Eyres@aciworldwide.com
(MoneyWatch.com) This story by Alice Garbarini Hurley originally appeared on CBS MoneyWatch.com. If you own one of the nation's 437 million debit cards, watch out. You might get scammed. Experts predict debit card fraud will rise by more than 10 percent this year, according to a recent survey by Actimize, a bank fraud consultant. That's because crooks are getting smarter and debit cards are becoming more popular.
And when it comes to card chicanery, not all plastic is equal."Debit card scams are a nightmare," warns Ed Mierzwinski, consumerprogram director for the U.S. Public Interest Research Group (PIRG) in Washington, D.C. "You don't get the same consumer protection as with a credit card."
By federal law, your liability for unauthorized transactions with acredit card tops out at $50. But that $50 limit applies to a debit cardonly if you notify the bank within two business days after the theftoccurs. Otherwise, you could be on the hook for up to $500. If you failto report the bogus charges within 60 days after your bank statement ismailed, your liability is unlimited.
Debit cards now account for almost 60 percent of purchases madewith plastic, and 90 percent of households with bank accounts have alinked debit card. The allure is obvious: With a tap, swipe, orsignature, you can pay for everything from postage stamps to a fancymeal and have the money automatically withdrawn from your bank account.The cards are equally alluring to scammers, who enjoy the ability tosuck money from the accounts of unsuspecting debit card customers. Andonce they start robbing you, it can be nearly impossible to get them tostop. "Some people have had to close their accounts to stop beingbilled," says Alison Southwick of the Better Business Bureauheadquarters in Arlington, Va. "It's a bit of a nuclear option, but forsome, that's the only way that worked."
Look for These Debit Card Scams
Here's the down and dirty on the three most common ways debit card information is getting swiped and how to protect yourself:
1. Pop-Up Ads- Editor's Note: Not to be confused with the Pop-Up PIN Pad!
These pop-up's show up on e-commerce sites after you've made a purchasewith your debit card. The pop-up promises cash-back rewards once youclick "Yes" on the ad. But you may not realize that you're actuallyagreeing to automatically sign up for a company's online membershipservice. And unless you cancel, your card will get charged every month,indefinitely. The scam, which also nails credit card holders, is legalbut slimy. Sen. Jay Rockefeller (D-W.Va.) is investigating this type ofpop-up ad fraud, which generates thousands of mysterious monthlycharges to cardholders.
One New Jersey couple with debit cards connected to their jointchecking account told MoneyWatch.com they recently got scammed for $80in monthly subscription charges to two sites they had never heard of:one for adult content and one for "Internet service." They noticed the$39.97 and $39.95 charges on their statement and called the bank, butwere told they had to either cancel their two cards or file acomplaint. Frustrated, they deciphered the toll-free number for eachhoax (the first nine numbers in the cryptic sequence listed on the bankstatement) and called the companies to demand their money back. Thefirst site refunded the cash. But the second refused, claiming that thecompany had processed the refund; it told the customers to call theirbank to find out why the money had not been released.
Courthouse News Service is reporting that a class action lawsuit has been filed against Wells Fargo regarding their "Excess Funds Retention Policy."
Class Action Lawsuit Claims Bank Cheats on ATM Deposits By MARIA DINZEO
SAN DIEGO - Wells Fargo takes advantage of customers who make math errors on ATM deposits by keeping the extra money even after it discovers the mistake, a class action claims in Superior Court. The "threshold amount" for the bank to snatch the money is about $10, the class says.
Lead plaintiff Brandi McLay says that when customers make a deposit by ATM and mistakenly enter an amount lower than the amount of the check, Wells Fargo pockets the difference.
She claims Wells Fargo does not inform customers of their errors, but keeps the money under what it calls an "Excess Funds Retention Policy" - which its customers do not know exists.
"This was a policy that we discovered through our investigation," said David Gallo, who filed the complaint. "It is a policy Wells Fargo keeps secret because they know they could probably get in trouble if they did disclose it."
The class seeks restitution and damages for conversion, unfair competition and unjust enrichment. They are represented by Gallo of Del Mar.
STATE OF THE THREAT ABSTRACT:
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