Reissue of credit card because of security.

February 16, 2007 8:30 PM

Credit card reissued because of possible fraud. What now?

So, I was just sent a credit card because of possible security problems. I just double checked my account, and there appears to be no charges outside those I have put on the card. Double checked the bank account, and none there either. Called to activate the new card, then cut the old one.

I then changed the account information for the few reoccurring payments I have, then I double checked everything again. Is there anything else I should do?

posted by zabuni to work & money (10 comments total)

same thing happened to me last week
posted by Deep Dish at 8:53 PM on February 16, 2007

Nothing special -- Watch your statements, as always, but especially careful for the next couple months.

You are not responsible for fraudulent charges as long as you promptly report them.
posted by SirStan at 9:12 PM on February 16, 2007

If you aren't already subscribed to one, sign up to a credit report minder service. Your credit card company probably has one available--usually the first month is free then $10/month after. It can send you email updates when new information is posted to any of your records with the big three reporting agencies. So, if someone is trying to open credit with your name, you'd know within a day or so of them trying and would be that more poised to counter it.

The service has an added benefit of making me more neurotic about my credit score/history.
posted by Burhanistan at 9:48 PM on February 16, 2007

If you aren't already subscribed to one, sign up to a credit report minder service.

If you have a PayPal account, you can get basically this exact service for free. It only monitors one credit report, but fraud will show up on all three bureaus' reports.

WaMu/Providian credit cards come with a free FICO score every month. A sudden precipitous drop in your score is a bad sign.
posted by kindall at 11:33 PM on February 16, 2007 [1 favorite]

Everyone correctly mentioned be vigilant, to which I'd add if you do discover this is larger problem, keep careful notes and confirm all phone calls in writing.

I had a similar problem in October 2006. The fraudsters apparently had strung together a series of credit cards and were flowing large sums of cash through. My card was integral to this fraud as it could absorb £30K in charges. Just last week I received some correspondence for a card that I never acquired, from an institution that I've never had an account relationship with.

I wish you the best but if this thing gets worse it potentially can absorb large amounts of your time.

Most banks these days are so damn eager to advance credit they worry much too late about default, and retail customers get caught up in all sorts of crap that is totally unnecessary.
posted by Mutant at 1:29 AM on February 17, 2007

If you aren't already subscribed to one, sign up to a credit report minder service. Your credit card company probably has one available--usually the first month is free then $10/month after.

So we're talking $120 a year for this stuff? And if you do find something has gone wrong it won't save you any time—you'll still have to spend the same amount of time writing to banks and credit agencies. No thanks.

There's no indication that anything other than your credit card number has been stolen, so I'd stop worrying about other cards being opened in your name. Just watch your statements.
posted by grouse at 4:16 AM on February 17, 2007

If you're truly concerned, another thing you can do is file a Fraud Alert watch on your credit report. It's free through any of the three major credit bureaus (Experian, Equifax and TransUnion). For 90 days (or longer, depending on the bureau), they monitor your credit report and make it difficult for anyone (yourself included) to open any cards or apply for lines of credit without really really jumping through hoops to identify yourself, including calling the number on your Fraud Alert notification. I put my cell phone number down as the contact information since I always have my cell on hand.

It will make those 'instant credit' situations a bit more complicated, but that's the idea, really. I'd rather be inconvenienced now in the name of keeping secure than dealing with the fallout of having identity stolen. I generally re-up the fraud alert every 3 months or so, just to be safe and access my credit report quarterly.

I haven't had a real issue with any sort of fraud, but where I do some banking online as well as make purchases online, and in light of the recent TJX security breach, it helps me feel more secure.
posted by jerseygirl at 7:05 AM on February 17, 2007

The fringe benefit of the Fraud Alert is it stops all those pre-approved credit offers coming to the house for 2 years.
posted by jerseygirl at 7:07 AM on February 17, 2007

What Jersey Girl said

I work in credit card finance and when a Fraud Alert (we call it a "Consumer Statement") is present on the credit bureau report, we are required to contact the person before further processing. I have seen these alerts save many people from identity theft.
When you place a fraud alert, be sure to provide a contact telephone number. We rely on this telephone number to ensure that we are indeed reaching the correct person. Cell phone numbers work best as a cell phone number is often the one piece of information that a crook doesn't often have.
The instant-credit processes will be more involved depending on who is issuing the card. You will most likely have to speak to someone (someone like me) who will further verify your identity by asking you questions to which only you will know the answer -- "what bank holds your current car loan" or "Name for me two credit cards on which you make a monthly payment". We also ask "dummy" questions to trip up potential fraudsters. If I see that there is no mortgage on the bureau, I will always ask the name of the bank that holds it to see if the person on the other end is being truthful.
I'd rather be inconvenienced than compromised.
Also, if you have a fraud alert on your bureau and you receive credit without being contacted first, you can raise a stink. It has happened. I am told that this is a "federal regulation" related to the "Patriot Act" but I am a worker drone who regurgitates what I am told.
posted by Hugh Jorgan at 8:24 AM on February 17, 2007

Here's another scenario under which a card can be reissued due to "potential fraud" - Visa and Mastercard (and prolly AmEx - we don't issue them so I don't know for sure) will notify the card issuer (your bank or credit card company) that they have identified "potential fraud" as a result of a compromise at a merchant location. This means that ABC company notified Visa that someone absconded with credit card numbers used at their location on X date. Visa will pull records of all cards used on X date at ABC company, and notify the card issuers. Then it's up to the card issuers to decide what to do - they might review all their impacted cards and see nothing suspicious, so they'll monitor activity for a couple months. They might close all the cards and issue new cards. They might only close cards with "suspicious activity" and monitor the rest.

If your card is replaced under a situation like this, your bank/issuer should send you a letter and tell you why it happened. If they know the merchant involved in the compromise, they should tell you. Be aware, though, that sometimes Visa or Mastercard will NOT tell the card issuer who the merchant in question is. It's a huge PR deal for all involved - merchant, V/MC, card issuer.
posted by ersatzkat at 7:37 AM on February 18, 2007