American Express Membership Rewards - Exactly what's on the magnetic stripe?

My Starwood Amex card left my hands twice, paying for airport transfer service to and fro in BUR. Several days later there were three fraudlent charges, all from southern California, two pay-at-pump, one from Home Depot, total under $300.

I phoned AmEx twice, as the three charges appeared, cancelled the card, they "investigated," mailed me that a physical card was used, not their problem, call back for Fraud if I disagreed.

So I called back, said my original calls did report Fraud, was told there had to be a card and it had to be mine and it wasn't their fault and did I file a police report ... (It never occurred to me to call the police since the card itself was in my hands, not stolen. Lesson learned.) The AmEx report was taken, I'm supposed to hear in 30 days, I wasn't at all pleased with the dismissive tone of the person to whom I spoke the final time and that the original calls weren't linked at all to this person's computer.

Then I called the local police who took a report, listened receptively to my speculations that the data had been captured via cell phone when I paid the van service and the officer suggested I check my credit reports for activity. That idea made me *very* nervous.

So the first question is is there enough information on a magnetic stripe to open new accounts? I used the online credit checking service and found no new inquiries. Or I guess identity theft might be next - my data is easily found on the internet.

Any other precautions to take?

And the second question does American Express have liability? (Fortunately the dollar amount isn't large but I am curious). I can't exactly prove I was in SJC not BUR but I can make a reasonable case that I flew back before the charges, probably can find dated emails I sent at about the same time as the transactions, ... But I'm not sure who would care.

Two charges were pay-at-pump - no signatures. I don't know about the Home Depot one. My signature is pretty illegible anyhow; that might not be a good defense.

Third - I've been pleased with the van service. Would you stop using them? Pay cash <gasp>?

Sylvia

Sylvia

http://money.howstuffworks.com/credit-card3.htm explains what is on the magnetic stripe.

Federal Trade Commission Avoiding Credit and Charge Card Fraud (http://www.ftc.gov/bcp/conline/pubs/credit/cards.htm) and The Fair Credit Billing Act (http://www.ftc.gov/bcp/conline/pubs/credit/billed.htm)

All it takes is for someone to swipe the card through a card reader that stores data. From there it's relatively simple to write the data to another card, thereby making a duplicate of your card. I'm not sure what data is actually encoded on an Amex card, but the vast majority of it is the same as what's printed on the card. Given a little bit of additional information you can encode your own card with just a picture of the card.

As for the charges, stolen cards are often first used at "pay at the pump" gas stations. If they fail to authorise the thief knows the card was reported as stolen and won't go into a store with the card and risk getting caught. Also, Home Despot now offers self-checkouts at some stores, so it's possible that the person using the copy of your card checked himself out without even showing the faked card to anyone working at the store.

If the "pay at the pump" use was before the Home Despot use I'd say that that's a very good sign of fraudulent activity. The credit card company knows this is what goes on. They may think you don't. I'd make SURE to point it out to them.

At this url (http://finance.yahoo.com/creditreports/creditreports/privacy_and_fraud/article/101278/Sophisticated_Technologies_Help_Guard_Your_Credit_ Against_Fraud) comes this tidbit that corroborates what I've said:...One of these types of transactions is a late-night fill up at a gas pump. Card thieves will often test a stolen card for usability with this kind of purchase, which can be made anonymously at a pay-at-the-pump machine. If the card still works, the thief knows the victim hasn't reported the card lost or stolen yet and that the time is ripe for a spending spree.

You were probably a victim of a "skimmer". This is a device that reads the stripe. It's then used to record the stripe onto a blank card. It's mainly a problem at ATMs, but can be used in other places. Probably somebody who works at one of the places was paid to skim cards.

The pay at the pump charges are typical. As they don't have to face anybody, they can see if the card works first. They then use it at a merchant or merchants.

As for repsonsibility, you didn't make the charges so you're not responsible. Under federal law, you're reponsible for a maximum of $50, period. Most card issuers, Amex included, waive the $50.

Thansk for the links, mia.

Magstipe contents: That leaves 40 characters on two tracks for "discretionary data" .

Precautions: The one tip that I will need to be more careful about is watching the card during a transaction. I remember now the airport-to-hotel driver urging me to book a return, unhappy that I didn't (different from the usual offer) and that, because of the bellman, I, my baggage, the driver, my card, were in several different directions and I remember feeling very confused at check-in. And the driver didn't to give me the receipt I asked for (not the credit card slip, the transfer service receipt). So I'm now thinking that it was on that first leg that the skimming happened.

What I find the most distressing is how American Express reacted. The first person I spoke to didn't even suggest cancelling the card (that was one pay-at-pump); the next day I had to say I wanted the card cancelled. Apparently neither considered this fraud. Neither suggested a police report. And then the "investigation" was formulaic and when I called about that, the person who took the report kept insisting that it had to be my card, maybe lost or used by someone else, but my card!

I would have thought that pay-at-pump would have been a red flag to AmEx when I called. I didn't know about the verification techniques; thanks for that information.

I have had excellent service from American Express in the past, resolution of charges that were posted incorrectly (returns, defective merchandise, ...). And the new card was overnighted to me "because I've been a long time cardholder".

Sylvia

* next time you talk w/AMEX, if they give you crap, tell 'em
to run a database query, see how many 'fraud' charge cards
were also used by the xfer service you used.

* contact mgmt of the xfer service you used, tell 'em they've
got a credit card skimming ring going on, and that you've
reported them to the cops and to AMEX; let 'em squirm
a bit...maybe they'll can a few of the creeps.

AMEX is a disgusting company. I dont even know why I continue to use them.