Credit card skimmers: A growing problem for North Texans
NORTH TEXAS (CBSDFW.COM) – Credit card skimmers are being installed in more places than ever before, and getting back the money isn't always a guarantee. One North Texas couple learned that lesson the hard way.
Kelsi DeKeyser had barely returned home from shopping when she got the fraud alert. In a matter of minutes she was on the phone with her bank, but the criminals worked faster.
In one afternoon – while she was still on the phone with Wells Fargo – the crooks drained approximately $6,500 from her family's checking account.
"I just felt horrible," she told CBS11. "I felt like I had messed up so bad!" She and her husband Alex filed a fraud report with Wells Fargo. Ten days later, the bank ruled against them, claiming the chip in the card could not have been duplicated.
"She told them she still had the chip card," said Alex. "She had not lost it, it was not stolen."
"And I told them I had never given my PIN to anyone," said Kelsi. "And so for those reasons, it must have been my card, they said."
Kelsi believes the card was skimmed while she was out shopping. The couple appealed Wells Fargo's decision, but that, too, was denied. Alex said he spent hours on the phone with customer support, trying to make them listen. "She said, 'our investigation is done, we can't reopen it. That's our final decision.'"
McKinney police sergeant Tina Malenfant says she's seeing more instances of banks holding customers accountable if their PIN is used. She says that accountability starts at the ATM or checkout, and that means assuming there is a skimmer everywhere. "In order to keep from being a victim, we have to start being smarter than the bad guys," Malenfant told CBS11.
That means testing the machine before you put in your card. "We have to start trying to pull the little devices off," said Malenfant. "I do it myself. I walk up and look at it. If it looks weird, then I won't use that machine. Or I'll go up and try to pull on it."
If you do put in your card, make sure you cover your fingers as you input your PIN. And if you do use an ATM, opt for the indoor machine instead of the drive-thru.
You also need to stay on top of your accounts. Go through your transactions every day or two to see if anything stands out. That's how a McKinney woman found the device that stole her information. Nyshje Rattler says she was charged nearly a thousand dollars after buying a bag of chips and a bottle of water at a 7-11 store. She knew that was the last place she had used her card, so she went back.
"I'm like, hey, something happened with my card, let me check the machine," said Rattler. "And I just lifted it up and it was there."
Police say while finding the skimmer isn't always that easy, tracking down the criminals is nearly impossible.
"I do think it's going to get worse because they've figured out a way to not get caught," said Sgt. Malenfant.
That's because the criminals don't have to have the skimmer in their hands to get the information from the device. They can simply be nearby, using a bluetooth signal to download the card data. That information is then sold online and can be put on a cloned card anywhere in the word. So the bad guys can spend your money even while your card is safe in your wallet.
Now those criminals have figured out a new way to steal your tax dollars - through debit cards issued by the Texas Health and Human Services Department. The electronic benefit transfer cards - or EBT cards - are used by millions of Texans to help pay for food. Consumer advocate John Breyault says EBT cards are too easy to hack.
"EBT cards are stuck in the dark ages when it comes to technology," he said. "They are still reliant on that outdated mag stripe technology, which is frankly over 40 years old. It's hopelessly insecure."
This is the first year that skimmers have hit EBT cards in Texas. So far the state has received more than 100 reports. While many states will replace those dollars, Texas is not one of them. "Consumers just don't have the same rights when it comes to misuse of their EBT cards, the way they do when their credit or debit card gets misused," said Breyault.
Breyault, who works for the National Consumers League, says when it comes to regular credit and debit cards, the law is clear. "Banks are required under federal law to make you whole when there is fraud."
Alex DeKeyser says fighting for their refund became a part-time job.
"You're talking multiple hours a day, 5-6 days a week, calling in, researching, calling in," he said.
It wasn't until he contacted us that Wells Fargo reversed its decision. "I told them that I was doing an interview with y'all, and I think that finally got their attention," said DeKeyser.
The day before our interview, the bank agreed to replace the $6,500 stolen out of their account. The DeKeysers have since closed their accounts with Wells Fargo and moved to another bank.
Here is the statement we received from Wells Fargo"
When a customer notifies us of an issue, we immediately conduct a thorough investigation. We were able to reimburse the customer for the money scammers took based on additional information we found. We regret the inconvenience and stress our customer encountered before then. To help our customers quickly identify fraud and scams, we have a number of resources available through our Online Security Center.
We also would like to share a couple a tips for your viewers:
- It's important for everyone to be vigilant and aware of common scams to avoid falling victim.
- Be wary of unexpected calls, texts, social media posts, or emails from scammers impersonating banks, tech support companies and government agencies. Don't be afraid to end communication with the person who contacted you and take time to research.
- When possible, consumers should use contactless debit and credit cards with chip technology that provides added security when the card is used at chip-enabled merchant terminal or ATM.
