Amex fraud detection software

Old Dec 21, 15, 11:03 am
  #31  
 
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I think Amex still does very well in the fraud detection area. Also the fact you can reach the company during holidays is very nice. I remember on several occasions on world travel I was down to one working card out of three and it was my Amex. I do think other banks are catching up.
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Old Dec 21, 15, 11:08 am
  #32  
 
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One way we could finally prevent all this is move to the European/Canadian system of chip readers at restaurants etc, so our cards never "disappear" to the back room to be swiped and card info stolen.

And yes, agreed on a great fraud detection system!
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Old Dec 21, 15, 11:11 am
  #33  
 
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Fraudulent charges should soon be a thing of the past once chip and pin technology in the US catches up to just about everywhere else.

I haven't had a fraudulent charge on any of my cards in at least 5 years now. The worst was when my visa was compromised three times in the span of 3 months. What annoyed me the most was that my bank didn't catch on to the obviously fraudulent charges. One that stuck out was for nearly a thousand dollars in skateboarding clothes that was shipped to a trailer park in British Columbia! In an odd twist, the UPS charge for the shipping posted a few days prior to the bulk of the charge. I remember sitting looking at my statement scratching my head about a 90$ UPS charge, as I typically use fedex or Canada post. When I called UPS i was able to get the name of the jackass who ordered the stuff where it was shipped to and his phone number. I briefly toyed with the idea of calling the number but thought better of it.

Since switching to chip and pin though, I haven't had a single card compromised. And i do find it mildly annoying having to sign chits whenever I go to the States.
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Old Dec 21, 15, 11:42 am
  #34  
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Card account numbers are not necessarily compromised by access to the physical card. Chips will not reduce card-not-present fraud, such as online transactions.
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Old Dec 21, 15, 12:25 pm
  #35  
 
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Yap, just had 2 on-line purchases from Argentina on my VISA card. Now on my 5th VISA card in 2 years. Only one on my AMEX about 6 years ago.
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Old Dec 21, 15, 12:32 pm
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Originally Posted by mia View Post
Card account numbers are not necessarily compromised by access to the physical card. Chips will not reduce card-not-present fraud, such as online transactions.
Yes, but chip and pin will essentially eliminate the skimmers, which when it comes to credit card fraud are the guys grabbing the lowest hanging fruit. I'd also imagine that up to pretty recently, skimming accounted for the bulk of fraudulently obtained account numbers.
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Old Dec 21, 15, 5:25 pm
  #37  
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Originally Posted by DMSFCA View Post
Since the card was almost brand-new when I went to NY, if it was someone that copied my card info it had to be one of those three restaurants or the hotel.
Almost assuredly one of the restaurants. Every time I've had fraudulent charges, it came right after handing over my card to a waiter or waitress who disappeared out of sight with my CC.
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Old Dec 21, 15, 8:40 pm
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i believe mine was stolen once using a boingo hotspot in john wayne airport.
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Old Dec 22, 15, 6:09 am
  #39  
 
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Originally Posted by patpatpatme View Post
i believe mine was stolen once using a boingo hotspot in john wayne airport.
You mean what looked like a boingo hot spot. Unless you had a key logger virus or someone just watching. You can give it many high high tech names but almost 99.% of anything taken via wireless method is via "man in the middle"method not sniffing or "listening"
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Old Dec 22, 15, 10:21 am
  #40  
 
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that could be possible, good point.

but everything seemed normal though as per the regular boingo login process.

Last edited by mia; Dec 22, 15 at 12:25 pm
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Old Dec 22, 15, 12:02 pm
  #41  
 
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I am also a Centurion card holder and have had an Amex card since 1978 without an instance of fraud.
I was travelling in Singapore, Malaysia, Thailand and Paris and was notified of a possible fraudulent usage, initially KFC in the USA for a couple of dollars, and then River island in London for a couple of hundred pounds. I travel almost constantly throughout the year and Amex picked up this fraudulent usage very quickly and handled sending the replacement card from Australia to NYC very efficiently. The only possible places I think the card could have been compromised was a large dental centre in Bangkok and a large chain pharmacy also in Bangkok. The only other usages were in high end hotels.
I will wait and see what happens with the new card.
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Old Dec 25, 15, 6:05 pm
  #42  
 
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On a somewhat related note, a relative works for one of the big banks managing card technology stuff. I asked him a while back why we don't go to the chip-and-pin system that is popular in Europe, it seems like a no-brainer. I'm probably going to screw up some details, but from memory:

He said there were two major challenges - the first is that the PIN is stored with the card. Your bank issues you the card and assign you a PIN. Americans are apparently terrible at remembering random numbers and to change it you have to go in with the card and do an enter-old-pin, enter-new-pin. Given how many cards are in circulation in the US they think that could turn into a logistical nightmare. I think he said that in Europe they are assigned a PIN and people there are generally better at remembering it.

The other problem (and I might not quite remember this right) is that the pin authentication isn't done at the nearest clearing house, it has to go all the way back to the issuing bank (?) and that doesn't happen instantly. He said for the big box stores and the like it could happen almost instantly but for the mom-and-pop places that don't have super fast infrastructure, this authentication process would take time and delay the POS process.
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Old Dec 26, 15, 6:09 am
  #43  
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Originally Posted by DMSFCA View Post
...asked him a while back why we don't go to the chip-and-pin system that is popular in Europe...
This issue is extensively discussed in this thread:

http://www.flyertalk.com/forum/credi...signature.html
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Old Dec 27, 15, 6:02 pm
  #44  
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Originally Posted by iMedic View Post
Yes, but chip and pin will essentially eliminate the skimmers, which when it comes to credit card fraud are the guys grabbing the lowest hanging fruit. I'd also imagine that up to pretty recently, skimming accounted for the bulk of fraudulently obtained account numbers.
I'd say online shopping provides even lower hanging fruit for thieves. Some places don't even ask for things like the 3-4 digit code on the back/front of the card, never mind the lack of proper security measures like applying software updates in a timely manner.

Originally Posted by DMSFCA View Post
On a somewhat related note, a relative works for one of the big banks managing card technology stuff. I asked him a while back why we don't go to the chip-and-pin system that is popular in Europe, it seems like a no-brainer. I'm probably going to screw up some details, but from memory:

He said there were two major challenges - the first is that the PIN is stored with the card. Your bank issues you the card and assign you a PIN. Americans are apparently terrible at remembering random numbers and to change it you have to go in with the card and do an enter-old-pin, enter-new-pin. Given how many cards are in circulation in the US they think that could turn into a logistical nightmare. I think he said that in Europe they are assigned a PIN and people there are generally better at remembering it.

The other problem (and I might not quite remember this right) is that the pin authentication isn't done at the nearest clearing house, it has to go all the way back to the issuing bank (?) and that doesn't happen instantly. He said for the big box stores and the like it could happen almost instantly but for the mom-and-pop places that don't have super fast infrastructure, this authentication process would take time and delay the POS process.
What mia said, but in short: banks simply didn't want to spend the money when the type of fraud that would be prevented by PIN continues to drop even without it (currently ~5% of all card fraud in the US, IIRC). The rest of it is rationalization for the public.

Too bad that a lot of places aren't going to bother with things that would actually decrease fraud, like bringing a terminal to the table at restaurants.
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Old Dec 28, 15, 10:31 am
  #45  
 
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Originally Posted by tmiw View Post
I'd say online shopping provides even lower hanging fruit for thieves. Some places don't even ask for things like the 3-4 digit code on the back/front of the card, never mind the lack of proper security measures like applying software updates in a timely manner.
Well by virtue of taking away the lowest hanging fruit (skimming) it will be replaced by the next lowest, which could be arguably hacking into databases, and publishing the files online.
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