Strange debit card fraud

[kdonnel]

I got a phone call from my bank saying there was potentially fraudulent activity on my debit card. This is a secondary savings account I have at a credit union used as a vacation savings account. An account I never use the attached debit card and in fact had not even activated the cards when sent to my address.

I told the person on the phone that the activity was definitely not mine and they closed the debit cards so they could not be used. They offered to transfer me to member services to get the charges reversed but I said I would feel more comfortable calling myself to ensure I knew I was really speaking to the bank.

When I got home I logged into the account and found three days prior there was a deposit for $1 and a withdrawal for $1 for a company in Illinois. Then two days prior there were two $1 withdrawals and associated $.01 currency conversion fees for a company in Great Britain.

All told my account was out $2.02 in fraudulent charges.

Now I know that generally attempts at low dollar amounts are made to see if a stolen card is active but why in the ensuing 3 days after they knew the card worked did they not ramp up the fraud and try to clean out the account?

I also know that most fraud is internal and this must have originated in the bank as I have never used the debit cards on this account, never activated them, and found both of them locked up in the safe at home.

 

[lynxstch]

Are you sure the phone call was from your bank? It sounds fishy to me. If you never activated the cards, and never used them, how would someone get the number? And why would they transfer you to member services? I would assume it would be member services that called you in the first place. Even though you were told they were cancelling the cards, I wouldn't know if they were telling the truth or not without finding out myself what happened. I would be calling the bank's fraud department directly, and find out what is going on. Or go into the bank personally and find out the answers. Good luck getting this resolved. At least you were only out $2.02!

 

[kdonnel]

I am sure it was actually the bank calling. When I called back they had a record of the fraud department calling me.

 

[kdonnel]

If you never activated the cards, and never used them, how would someone get the number?

Most fraud originates internally. An employee of the bank.

 

[PrincessShmoo]

I am sure it was actually the bank calling. When I called back they had a record of the fraud department calling me.

Is that (travel) account linked to your other accounts? We have a travel account at one of our banks, but it's not linked with our other accounts, so someone hacking into one of our regular cards/accounts can't access it.

 

[kdonnel]

Is that (travel) account linked to your other accounts? We have a travel account at one of our banks, but it's not linked with our other accounts, so someone hacking into one of our regular cards/accounts can't access it.

It is a completely different bank than our regular bank. It is a credit union that only has 6 locations in the US located in NY, MA, DC, and VA.

 

[lynxstch]

Most fraud originates internally. An employee of the bank.

Then I hope they investigate and find out who did it.

 

[robinb]

Someone on the Dark Web is going to be pretty disappointed when they realize they have purchased a dud.

I'm glad that your bank's fraud department contacted you. Every time my bank's fraud department calls me, it's a valid charge and they mess things up by freezing the card.

 

[mrodgers]

Often, at least here in the US and possibly the UK, the POS system will initially charge $1 first to check the account before allowing you to proceed with your purchase payment. You don't see this, it's all in the computer network, but that's what's happening while you are waiting with your card in the reader. I always see stuff on my account like this if I check before the system reverses the $1 charge.

Online I don't know what it does with payments.

It could have flagged it and not allowed the purchase/payment, thus you didn't see a larger amount?

 

[Mackenzie Click-Mickelson]

One reason could be they hope the small amounts don't trigger anyone noticing which is more old school method and biding their time. IME these days they are more often making large purchases very quickly because as a consumer there is more protection for you on fraudulent charges making the left of large amounts easier and easier to make knowing the banks don't fight it quite as much.