Commanders & Finance Folks, Be On The Lookout!

[NIN]

My unit (as well as a number of units in my wing) all petitioned for and were issued squadron credit cards in the last 6 months (managed by wing, etc).

Since we got our card in September, we've used it maybe 7 times.  This month, wing requested we supply the receipts for the charges made since the last statement on 18 November.

We had last made a big Vanguard order with this prior to 18 Nov, so on this last statement was a $3 credit from Vanguard (gonna be tough to provide a receipt for a credit, but OK..) and a $.25 (that's 25 cents) charge from a company called "Adele Service". 

No clue who Adele Service was, nor why we'd want to charge 25 cents to our squadron credit card, so I decided to look into the charge.  A quick Google search lit my hair on fire.

Basically, THOUSANDS of people have reported these inconsequential charges from this outfit, and some have reported that following these inconsequential charges, they've been socked for a big fraudulent charge on their card.  (I will note: "some" have reported this, not everybody).

The problem is, the 800 number they report as a contact is apparently bogus, and nobody knows who these folks are.

If your unit has a squadron credit card, examine the statement carefully and make sure that you're not hit with a bogus charge.  You might want to do that with your personal cards, too.  Many people who have been hit by this report that the only place they've used this specific card is at Amazon.com or some other legitimate retailer.

My unit's credit card transactions were: Dominos Pizza, the Laser Tag place in the middle of rural NH, 7-11, Mobil Gas, Kinkos and Vanguard.    So that kinda narrows it down.  It could be a data breach at their processor, or it could be a breach at the merchant themselves. Be cautious where and how you charge!

[Duke Dillio]

Any idea if this had anything to do with the Vanguard jacking that happened a little while ago?

[RiverAux]

I had a charge from them on my last Visa bill and sent in a challenge to the credit card company. 

[Short Field]

Serious and widespread issue ....

http://www.abc2news.com/mostpopular/story/Bank-Scam-Steals-Your-Money-with-a-Few-Cents/B6Qt4-5YeE6RKUcVcjvaNg.cspx

[desertengineer1]

These are charges used to test if the numbers are good.  If the purchase is successful, your numbers are elevated to a "good list" that are either banked for a future scam from further behind hidden lines, or sold at a higher value to other scammers.

I had a similar charge to mine a few weeks after the rumored Vanguard breach for $8.95 to a company named eztemplatesrpo.com.  It took two submittals to the bank fraud dept and about two months for them to eventually credit the amount back. 

Since then, I've watched my card online very closely.

Don't assume the bank is looking out for you.  Cross-check your statements regularly.  Call the managing bank immediately if there are questionable charges.

A co-worker got hit for about $2,400 a few months ago and it took him about a month to get it credited back.

[JAFO78]

Thanks NIN. Its nice to see that we watch everyone's back here. I consider everyone here extended family.

:clap: :clap: :clap:

[JC004]

I got one of these on a personal card a couple of times.  One was a few dollars (like 5 or something) and one was just change (around 50 cents, I think).  I got an attempted charge on my ING Direct card once, but ING stopped it and called me.  I don't buy from shady places...online is Amazon, Buy.com, etc., but I guess the employees there can still get the card information.

[NIN]

I got one of these on a personal card a couple of times.  One was a few dollars (like 5 or something) and one was just change (around 50 cents, I think).  I got an attempted charge on my ING Direct card once, but ING stopped it and called me.  I don't buy from shady places...online is Amazon, Buy.com, etc., but I guess the employees there can still get the card information.

I work for a mail order distribution company (no, not Amazon) and while its true that our employees *could* see and compromise credit card data, the more likely scenario is a form of a data breach where card numbers are compromised en masse.

We're presently implementing a new website to allow online ordering (well, OK, *better* online ordering than our old site) to include holding credit cards much like Amazon does. After entry, the card numbers are encrypted in the order management system and all a CSR or anybody would be able to see is the "last four" after that.  It doesn't protect you from an unscrupulous employee writing down CC #s as he or she takes a phone order, but it sure does reduce your exposure.

(Besides, with appropriate access controls in place, you should be able to narrow down the specific employee doing those kinds of things pretty quick..)

Still, this is a substantial problem. My unit has about $6,000 in the bank.  A $2500 hit would be substantial for us, but in the case of some units, it would sink them.

[Timbo]

My local gas station robbed me and about 1,000 other people.  Thieving Pieces of POOP rigged the card readers on the pumps to steal the information from the card that you choose to swipe through for payment, and charged everyone around $0.96  UNLESS you actually look at your statements on line or on paper you may also be getting robbed. 

Me and around 240 individuals are in a Class Action against the national gas chain because it was actually the stations employees who set this up, and poor oversight on the part of the corporation.

I honestly believe that people who commit electronic crimes and fraud should face a mandatory life sentence.     

[Capt Rivera]

Me and around 240 individuals are in a Class Action against the national gas chain because it was actually the stations employees who set this up, and poor oversight on the part of the corporation.

What company?

I don't buy from shady places...online is Amazon, Buy.com, etc., but I guess the employees there can still get the card information.

I work for Amazon. I can tell you that customer information is highly protected and that very few people can see the information needed to make a fraudulent purchase. The few people that can access it, must go threw extra steps to see it and all access is logged & probably flagged for inconsistencies.

I am also positive that every employee, including the janitors have thorough background checks (Criminal & Financial). You can be confident when buying on Amazon.com

[Capt Rivera]

The most unsafe credit card purchase you can probably make is at the small stores, 99 cent stores and some gas stations...  Many of these places use wireless technology to transfer information from point of sale to the back end before going out for processing. Someone sitting in a car with their laptop can collect full credit card information all day. Granted they have to be able to decrypt it, but... thats been done...

Knowing this... I don't use my card at the pump unless there is no other choice. I also don't use my credit card anywhere where the point of sale system looks more then a couple years old.

[Eclipse]

The most unsafe credit card purchase you can probably make is at the small stores, 99 cent stores and some gas stations...  Many of these places use wireless technology to transfer information from point of sale to the back end before going out for processing. Someone sitting in a car with their laptop can collect full credit card information all day. Granted they have to be able to decrypt it, but... thats been done...

Knowing this... I don't use my card at the pump unless there is no other choice. I also don't use my credit card anywhere where the point of sale system looks more then a couple years old.

While I'm not going to necessarily not use my charge card because of it - there's safeguards in place from the credit card itself as to my liability exposure - the above is essentially correct.

I've mentioned here before that I'm involved right now with implementing PCI-DSS, and small merchants (those with 20k or less transactions per year) are only required to submit self- assessment questionnaires to their merchant account providers, and many of those small shops are themselves being scammed by 1-click online "PCI Scanning" companies.

I can tell you two things:

a) Large companies and franchises are doing everything they can to prevent compromises of customer information.

b) No matter what they do it'll never be 100% safe as we are always at the mercy of the human element (hand your charge card to a waitress lately?)

[Hawk200]

For all my online stuff lately, I've been using the PayPal plugin, or those Visa gift cards. The PayPal will actually let you limit for single use, or multiple purchases. Plus it's harder for someone to go tracking your purchases, if that's an issue. I wouldn't recommend it for a unit, but on the personal side, it's handy.

You might lose money on gift cards, but only what's left on the card. This was a prime reason why there was such a push on pre-paid calling cards. Yeah, they're convenient. With the old home phone type calling card, if anyone saw you use it, they could ruin your life. Now, they only get a few minutes of talk. Those credit card logo-ed gift cards are the same way.

[Eclipse]

I realize for a variety of reasons debit cards are the only option for some people, but the risk to my bank account(s) is too great for me to even consider using them.

A credit card has specific limitations as to personal liability in a compromise, and its not my money to start with.

A different story with debit cards that leave you to the sometimes draconian policy of the bank and recovering what is actually your money can take months.

[Capt Rivera]

I realize for a variety of reasons debit cards are the only option for some people, but the risk to my bank account(s) is too great for me to even consider using them.

A credit card has specific limitations as to personal liability in a compromise, and its not my money to start with.

A different story with debit cards that leave you to the sometimes draconian policy of the bank and recovering what is actually your money can take months.

I agree with Eclipse on this one 100%... I never use a debit card... ever... Credit cards yes... Debit cards... no....

I find it funny & sad how many people think a debit card is the same as a credit card...

[NIN]

In the interest of complying with the National Comptroller's directive of "Widest Possible Dissemination," please see the following:

From: WILLIAM CHARLES
To:Sent: Wednesday, December 31, 2008 2:34 PM
Subject: PRIORITY MSG CAP Credit Card Fraud Warning

PRIORITY MESSAGE

TO: All Commanders, Board Members, FM Staff

FROM: Col W. S. Charles, CAP National Controller

SUBJECT:  Potential for Fraud on CAP Credit Cards  - Please give widest distribution

1.     On a recent CAP Blog a unit commander reported that there was an unknown charge of .25 cents on the CAP Credit Card issued to that unit by wing.  This charge was from a company called "Adele Service".  It is reported on this blog that other CAP units have had similar charges from this company on their CAP issued credit cards.

2.     A search done on this company shows they list an 800 number that is not valid.  Many credit card holders have had charges similar to this that then lead to charges for  much larger amounts.  These charges are a test on the card to see if it works.  Once they know it works they fraudulently charge much higher amounts.  This company is known to bank security offices as a fraudulent company used to test stolen credit card information. 

3.    All commanders at all levels should immediately  audit all credit card statements on CAP issued cards  for any charges from "Adele Service" or for any charges for very small amounts that are not known to be valid.  It is recommended that you audit at a minimum the last 6 months of credit card bills.

4.    If any of these type charges are found on a credit card issued in the name of CAP you must immediately report this to the financial institution that issued the card.  Further, document these charges by date, amounts, and vendor and date reported to the financial institution that issued the card.  Then send this information to the CAP National Controller by email to wcharles@cap.gov and include any information provided by your financial institution.

5.    Please conduct this audit no later than 15 Jan 2009.  Further, all units and FM Officers should be advised to monitor all monthly credit card statements for charges that are similar to these known fraud charges.    If you have any questions on this or any potential fraud issues on CAP issued credit cards please contact the CAP National Inspector General or the CAP National Controller.  I thank you for your immediate attention to this matter.   

William S. Charles, Col, CAP,  National Controller

[A.Member]

A different story with debit cards that leave you to the sometimes draconian policy of the bank and recovering what is actually your money can take months.

If you have a crappy bank. 

I actually just had my card "borrowed" from me without my knowledge about a week and a half ago.  Fortunately, I discovered the problem within a couple hours.  After contacting the fraud department, my bank immediately issued a provisional credit to my account.   I've got paperwork to submit back to the bank to make the credit permanant. 

[EMT-83]

I had my debit card declined today; a little embarrassing while standing in line at the store. I ran to the bank, and found that the account had been frozen due to suspicious activity. There was a 22 cent charge from our friends at "Adele Service".

I reviewed recent activity with the bank's fraud unit, and that was the only item found. Card quickly canceled with a replacement on the way.

Great heads up from the folks at CAP Talk.

[♠SARKID♠]

I had my debit card declined today; a little embarrassing while standing in line at the store. I ran to the bank, and found that the account had been frozen due to suspicious activity. There was a 22 cent charge from our friends at "Adele Service".

I reviewed recent activity with the bank's fraud unit, and that was the only item found. Card quickly canceled with a replacement on the way.

Great heads up from the folks at CAP Talk.

Bravo Zulu on the catch.  I'm trying to check my statement, but US Bank's online services are experiencing "technical difficulties".  I'm concerned because I do a pretty good amount of online shopping.

Edit:  I put in a call to the phone center and had them check my account, I'm in the clear.  But I'll be keeping a close eye on my accounts for a while.

[♠SARKID♠]

OH MONKEYS I HAVE A CHARGE FROM ADELE!  NOT GOOD.

Edit:  Account closed, new card on the way.