I would just like to add the following. I managed electronic payment and credit card fraud for a few years for our company. This included seminars with the Secret Service and Treasury Department. Take none of this personally, but this is what I've learned:
- Florida and New York are the fraud capitals of the US (mostly Russians and other immigrant organized crime carrying this out).
- Western Union is typically a bad idea
- US Postal Money Orders were compromised and many fraudulent MOs were/are out there. (I would never send the item until I cashed that MO). This was perpetrated by postal employees who stole the MOs, but the possibility still exists.
- You have the Ruger forum, thieves have their own forum. They buy/sell stolen credit cards and IDs all day long. The youngest and worst offender caught by Secret Service was a 23 year old guy, who sold 150,000 stolen credit card numbers, with zip codes, in one transaction! This part is even scarier, because it's a non-violent crime there aren't many resources. The only reason SS and Homeland Security even pay attention is the risk of laundering money for terrorism. That said, their best leads come from card manufacturers. When a large order for blank plastic comes in, they fill it, collect their money, then drop a dime to the SS about the buyer.
- NEVER user your PIN number unless you are at an ATM. It only exposes you to additional risk. Many electronic points of sale (EPOS), ask for your PIN after you swipe a credit/debit card. "Do you know your PIN?" Other baiting questions like that, so you forget why they are asking. They want your PIN, because it reduces their transaction fee. Although the use of your PIN lays all fraud responsibility on the card issuer for THAT transaction, all future transactions from the compromised PIN are on you.
- Skimmers. Many of you know what they are. If you use a Red Box, or other video rental at CVS, Walgreens, etc. Or any ATM that is new to you, grab that skimmer and give it a tug. Make sure it's not a fake skimmer, laid overtop the real skimmer.
- American Express is the easiest and most often card to be duplicated. Worst yet, they typically have the highest credit limits and worse protection for merchants.
I'm sure there's more, but that's enough to keep you up tonight.