American Express Membership Rewards - Quickest case of fraud ever?

Got AMEX Open Gold via targeted offer (75K/$5K) and applied online. Card was shipped via UPS on July 3rd, and delivered to me on the 6th (per UPS tracking). I activated it by phone the same day. Didn't get around to registering it for online access until today (the 7th) but when I did, I noticed there was already a fraudulent charge made on the morning of the 4th; two days before I got the card! AMEX sez that it was activated on the 3rd (the shipping date). Gonna have to figure out how someone could activate the card from a not-on-record phone number. Either someone is uncomfortably familiar with my personal info or there's a breach at AMEX (or one of its associates). Hopefully the latter!

Of course AMEX reversed the charge, cancelled the card and will be sending out a new one. ^

They claim that this won't affect the 75K promo; we'll see.

Woah! Never heard of a card being used fraudulently before it was even received! Do you know of anyone who could have done this?

Most people put so much trust in the relatives when it comes to SSN,etc. My brother-in-law's brother, had access to his SSN and went on to create about 4 credit cards in his name, burnt threw them to the tune of about $45k.
4 years later, my brother-in-law is still trying to build back his credit score and STILL has problems with the collection agency.

Woah! Never heard of a card being used fraudulently before it was even received!
Even better, it was used before it was activated! Didn't think this was possible.


Do you know of anyone who could have done this?

Most people put so much trust in the relatives when it comes to SSN,etc. My brother-in-law's brother, had access to his SSN and went on to create about 4 credit cards in his name, burnt threw them to the tune of about $45k.
4 years later, my brother-in-law is still trying to build back his credit score and STILL has problems with the collection agency.
AMEX vets card activations pretty thoroughly so I don't think anyone would know enough personal info to activate the card. Plus the card number itself wouldn't be known to anyone (including myself) prior to it being delivered on the 6th.

"Is a puzzlement", as Yul Brenner might say.

Even better, it was used before it was activated! Didn't think this was possible.


AMEX vets card activations pretty thoroughly so I don't think anyone would know enough personal info to activate the card. Plus the card number itself wouldn't be known to anyone (including myself) prior to it being delivered on the 6th.

"Is a puzzlement", as Yul Brenner might say.

You might want to keep an eye on your credit report and credit statements though.

My entire system of trust is based upon the fact that the CSRs are trustworthy and will not do anything wrong, even though they can access my SSN and account info.
Once that's broken, I have nothing left in this desolate world. :D

You might want to keep an eye on your credit report and credit statements though.

My entire system of trust is based upon the fact that the CSRs are trustworthy and will not do anything wrong, even though they can access my SSN and account info.
Once that's broken, I have nothing left in this desolate world. :D

I would put a freeze on my credit right away!

AMEX sez that it was activated on the 3rd (the shipping date). Gonna have to figure out how someone could activate the card from a not-on-record phone number.

I have never activated a card in the last 10 years from an on-record phone number. I think the instructions to do so are a farce.

I live in Denmark and have a second home in Florida. Almost all of my US-issued credit cards that are issued to my Florida address use my mother's New York phone number as the number of record. When I get my new cards, I activate them from Denmark (work, home and mobile numbers), from Florida (mobile number), via Skype, etc.

Some years ago, I was always put through to a live person to confirm the activation which I assumed was due to calling from a not-on-record phone number. In recent years, even that hasn't been necessary, and my cards have been activated via the automated system after asking for my SSN.

Susan

:confused: Why would one activate a USA-issued American Express card by telephone when it can be done online?

http://americanexpress.com/activate

:confused: Why would one activate a USA-issued American Express card by telephone when it can be done online?

http://americanexpress.com/activate

Honestly, I had no idea it could be done online. :D

Thanks for this info, mia. I'll know this for next time. It's not a problem to ring since it's an automated voice thing, so only takes a minute, but certainly I'd be happy to do it online.

:confused: Why would one activate a USA-issued American Express card by telephone when it can be done online?

http://americanexpress.com/activate

+1, news to me too! The whole activation thing may be a good idea for security reasons, but it is annoying (especially some loser issuer forces you to listen to ads for high-profit additional features as part of the process).

+1, news to me too! The whole activation thing may be a good idea for security reasons, but it is annoying (especially some loser issuer forces you to listen to ads for high-profit additional features as part of the process).
It is clearly mentioned when you receive the card. The sticker covering the number (?) has both the telephone # and the URL to activate.

It is clearly mentioned when you receive the card. The sticker covering the number (?) has both the telephone # and the URL to activate.

Is that fairly new? I would always opt for a web option over phoning. My husband's updated card came a few months ago (March?) and I didn't notice it.

It is clearly mentioned when you receive the card. The sticker covering the number (?) has both the telephone # and the URL to activate.

I'm not in front of a computer when I get my mail - and I don't wait until I get in the house to start opening envelopes from card issuers when I'm expecting a card! By the time I'm back at my door, I'm already on the phone activating! Am I the only one that gets excited about this process? :D

:confused: Why would one activate a USA-issued American Express card by telephone when it can be done online?

http://americanexpress.com/activate
Because it was simpler and faster to do it via phone. Punch in a 10 digit phone number, the card number (which you can speak instead of enter via the phone's keypad) and answer a couple prompts and that's it. Whole thing took a couple of minutes - maybe less.

My computer wasn't turned on when I picked up the mail. I would have had to turn it on, wait for it to boot up, start a browser and enter a 35 character url and then navigating through AMEX's website. Much slower.

It is clearly mentioned when you receive the card. The sticker covering the number (?) has both the telephone # and the URL to activate.
Not always true. I am looking at a new Citi branded AMEX card and the sticker ONLY has a phone number for activation. Of course strictly speaking, this isn't really an AMEX card.:)

Really, what's the big attraction about doing things online?

I don't think we are talking about Amex card issues by other banks. I have been activating my Amex card online for years. It's so much faster and convenient. With today's smartphones, you can do that even if you don't have a computer with you.

I don't think we are talking about Amex card issues by other banks. I have been activating my Amex card online for years. It's so much faster and convenient. With today's smartphones, you can do that even if you don't have a computer with you.
I guess we'll have to agree to disagree on this one. Personally, I cannot image that using a smartphone to activate would be more convenient or faster than just calling in.

But this is moving away from the real question. How was the card used prior to my receiving/activating it?

Whether by outright fraud or a miraculous and odds defying, yet innocent, card number mis-entry, I can see two possibilities:
1) The card was fraudulently activated within a couple of days of the account being opened. Maybe someone has my personal info and was able to convince AMEX to activate the card. Or maybe there's someone working on the inside. Lots of possibilities.
2) AMEX's security procedures vis-a-vis the use of unactivated cards is faulty.

AMEX is actively looking into what happened (or so they say) and the charge has been reversed. Maybe they'll tell me what they find. Maybe not.

... How was the card used prior to my receiving/activating it?

Their system could have created two accounts with the same number or unrelated accounts could be cross linked due to a database error. A few times each year I see unauthorized charges on cards which don't make sense as fraud. (Why buy an insurance policy with a stolen card number? The policy will be cancelled.) Card company databases are not immune to record corruption.

Their system could have created two accounts with the same number or unrelated accounts could be cross linked due to a database error.
It's possible that AMEX's card number generation software and/or db's aren't as robust as they think (or maybe they are and AMEX just knows that these things will happen occasionally). This falls under the category of "their no use of unactivated cards is faulty." I hope that AMEX will eventually tell me what happened but I don't expect it as AMEX would have good reason not to disclose underlying security issues.

A few times each year I see unauthorized charges on cards which don't make sense as fraud. (Why buy an insurance policy with a stolen card number? The policy will be cancelled.)
You don't say what sort of insurance was purchased. In some states you have to show proof of insurance in order to register a car. Someone could signup using a stolen CC, get proof of insurance and then register the car. It wouldn't matter to them if the insurance was cancelled or never in force as they only needed "proof" for as long as it took them to register the car.


Card company databases are not immune to record corruption.
True. Maybe AMEX is using Access!:D

Got AMEX Open Gold via targeted offer (75K/$5K) and applied online. Card was shipped via UPS on July 3rd, and delivered to me on the 6th (per UPS tracking). I activated it by phone the same day. Didn't get around to registering it for online access until today (the 7th) but when I did, I noticed there was already a fraudulent charge made on the morning of the 4th; two days before I got the card! AMEX sez that it was activated on the 3rd (the shipping date). Gonna have to figure out how someone could activate the card from a not-on-record phone number. Either someone is uncomfortably familiar with my personal info or there's a breach at AMEX (or one of its associates). Hopefully the latter!

Of course AMEX reversed the charge, cancelled the card and will be sending out a new one. ^

They claim that this won't affect the 75K promo; we'll see.

I had the exact same thing happen to me with the same card a little over two years ago. Amex sent a new card right away and I never had an issue with my credit. Still makes me wonder what happened and if it was an inside job...

:confused: Why would one activate a USA-issued American Express card by telephone when it can be done online?

http://americanexpress.com/activate

Sometimes the online activation does not work. This happened to me a couple years ago. I noticed my SPG card's available amount has never gone up to the true credit line. Later I found out the card was not activated that was why it was kept at the level that allowed you to book hotel stay but actually could not do anything else. Good thing I had not even tried to use it. The CSR activated the card again and then the full credit line showed up as available.

Since then I just activate my cards via phone method. Much quicker too.

Their system could have created two accounts with the same number or unrelated accounts could be cross linked due to a database error. A few times each year I see unauthorized charges on cards which don't make sense as fraud. (Why buy an insurance policy with a stolen card number? The policy will be cancelled.) Card company databases are not immune to record corruption.

This brings up a question on the 4 digits security code.

How come several of our cards have the SAME security code despite they are different accounts with different cardholders?

One time when I talked to AMEX about this, even the CSR was surprised.

How slim is the chance to have identical 4 digit security code on different cards in the same household?

The last 5 digits of the card number are also awfully close or even the same in some cases. Makes them hard to distinguish when only the last 5 digits are revealed as in many online payment systems generally do.

I had the exact same thing happen to me with the same card a little over two years ago. Amex sent a new card right away and I never had an issue with my credit. Still makes me wonder what happened and if it was an inside job...
I wonder what happens if one tries to activate a "new" card that has already been activated. Does the system recognize this and tell the cardholder attempting the delicate activation or send an alarm into the AmEx system that there may be a problem?

This brings up a question on the 4 digits security code.

How come several of our cards have the SAME security code despite they are different accounts with different cardholders?

One time when I talked to AMEX about this, even the CSR was surprised.

How slim is the chance to have identical 4 digit security code on different cards in the same household?

The last 5 digits of the card number are also awfully close or even the same in some cases. Makes them hard to distinguish when only the last 5 digits are revealed as in many online payment systems generally do.
When I received the replacement cards (yes cards, plural, more on that later) I also noticed that the security code was the same as the original card. Also noted that only a single digit in the account number was changed (along with, of course, the check digit). Makes me wonder if someone could figure out AMEX's algorithm for replacement card numbers given a previously valid one.:td:

I mentioned "replacement cards" not "replacement card." AMEX actually sent me two replacement cards in two separate UPS envelopes (arrived together). Both cards had exactly the same info. What happened, I think, is that the original (compromised) card had the wrong "Member Since" date on it. When I mentioned this to the AMEX rep they said that there was no problem in fixing it. But by that time, a request for a replacement card had already been submitted. When they changed the "Member Since" date, their system automatically generated a new "send this guy a replacement card" request. When the cards were actually printed, the database had already been updated and both cards had the same date.

I wonder what happens if one tries to activate a "new" card that has already been activated. Does the system recognize this and tell the cardholder attempting the delicate activation or send an alarm into the AmEx system that there may be a problem?
Interesting question. Don't think I'll push my luck and try this but if anyone else wants to experiment.....

I would put a freeze on my credit right away!

Why? Someone got his card info from most likely Amex, it isn't like someone applied for a card in his name...

This brings up a question on the 4 digits security code.

How come several of our cards have the SAME security code despite they are different accounts with different cardholders?

How slim is the chance to have identical 4 digit security code on different cards in the same household?



I've heard the 4 digit code referred to as a "batch code" - this suggests to me that a batch of cards (don't know how big a batch is) will all have the same number. Certainly when my card and my wife's card were first issued together, they had the same batch number, but later cards and reissues had different numbers.

As for the last five numbers on the card being very similar, that's because the those numbers mean something. Only applies to "real" American Express cards - not Amex network cards issued by another bank. The last digit is the check digit to make sure the card number is correct. The two before that are 00 for the main card on the account, then 01 for the next card and so forth. So every account will have a 00, fewer will be 01, fewer still 02...
The digit before that is the issue count. Brand new card, it's a 1. Lose it, have it stolen, wear it out and the replacement will have a 2 there. Have it replaced again, it gets to be 3. One of my cards once got to a 9 in that position. Oops!

I got my new Amex spg card yesterday with the information that the 4 digit pin is going to come by post in a few days. (UK card with Chip and Pin) and that the PIN was sent separately for security purposes.


However I logged in online to activate the card and there was an option to view the PIN online. :p

I've heard the 4 digit code referred to as a "batch code" - this suggests to me that a batch of cards (don't know how big a batch is) will all have the same number. Certainly when my card and my wife's card were first issued together, they had the same batch number, but later cards and reissues had different numbers.

As for the last five numbers on the card being very similar, that's because the those numbers mean something. Only applies to "real" American Express cards - not Amex network cards issued by another bank. The last digit is the check digit to make sure the card number is correct. The two before that are 00 for the main card on the account, then 01 for the next card and so forth. So every account will have a 00, fewer will be 01, fewer still 02...
The digit before that is the issue count. Brand new card, it's a 1. Lose it, have it stolen, wear it out and the replacement will have a 2 there. Have it replaced again, it gets to be 3. One of my cards once got to a 9 in that position. Oops!

Indeed, remember these are pre-printed, so I'd imagine a lot of cards would have the same one that are issued at the same time. Most card issuers can generate a random one as it gets printed on the magstripe with the card number.

I got my new Amex spg card yesterday with the information that the 4 digit pin is going to come by post in a few days. (UK card with Chip and Pin) and that the PIN was sent separately for security purposes.


However I logged in online to activate the card and there was an option to view the PIN online. :p
That's quite normal, I think this has been there for quite some time.

The welcome pack also mentions that you can view your PIN online. Some other banks also provide this facility.

Got AMEX Open Gold via targeted offer (75K/$5K) and applied online. Card was shipped via UPS on July 3rd, and delivered to me on the 6th (per UPS tracking). I activated it by phone the same day. Didn't get around to registering it for online access until today (the 7th) but when I did, I noticed there was already a fraudulent charge made on the morning of the 4th; two days before I got the card! AMEX sez that it was activated on the 3rd (the shipping date). Gonna have to figure out how someone could activate the card from a not-on-record phone number. Either someone is uncomfortably familiar with my personal info or there's a breach at AMEX (or one of its associates). Hopefully the latter!

Of course AMEX reversed the charge, cancelled the card and will be sending out a new one. ^

They claim that this won't affect the 75K promo; we'll see.

WOW....but if its a breach at AMEX (or one of its associates) then we should see a LOT more of these....So I doubt that...I would be more careful with personal info....