A friend used his wife's newly minted Ink Preferred to pay estimate tax online at pay1040.com that is sanctioned by IRS. Then they went on a 2 weeks trip in Europe without the card. Upon return they found out between Apr 20 and 26, a total of $1800 fraudulent charges were put on the card which was in the drawer all the time. 1/2 of the transactions were online and used with Uber. The other 1/2 was In person transaction. When they called the Chase rep was very annoyed, kept saying that was impossible to have In person fraudulent charges due to it is a chip card. What the rep did not realize is, a chip card can still be clone if enough data was stolen (the only usage was the pay1040.com est tax paid online), and then if the clone card does mot have a chip, it will then be processed as a swipe card.

All the fraudulent charges were reimbursed by Chase, but the fact that the chip card can still be compromised bothers my friend a lot and of course the estimate tax payment made online was the only transaction and a few days before the fraudulent charges happened added to another worry. I personally feel either his computer was compromised or his kids may have something to do with it. He claimed the kids had no access to the card and also the charge pattern did not fit his kids charge pattern (they are both over 20). But that could not rule out the card info being sold. just sayin.

I told him to google if there are any reports about cards being compromised after used to make tax payments on the sanctioned site, he did not reply to my query.
I also told him to set up alerts on ALL his credit cards, not just from Chase, as long as the issuer site has such alert ability, on card NOT present transaction and on transaction over X amount - that way you get alerts even you are aboard and then can SM the issuer immediately on any suspicious activities popped up on your cards. There are so many alerts one can set with the financial accounts, one should take full advantage of it.