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GCFLASH
Hot Off the Press!
Tuesday, February 26, 2008 - Edition #443
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Weekly Spotlight
Did you know banking is as easy as dialing (856) 589-6600 (option 4) with our automated bank-by-phone system? 24 hours a day, 7 days a week, and absolutely FREE! If you haven't tried GCF Express Line yet, why not try it today?
1st Flash:
GCF VISA DEBIT CARD FRAUD
Recently, a few of GCF Banks' debit cards were involved in a skimming fraud. I imagine that most of you sitting there in your chair are wondering, "What in the world is skimming?" Skimming is the theft of credit, or in this case, debit card information used in an otherwise legitimate transaction. It is typically an "inside job" by a dishonest employee of a legitimate merchant, and can be as simple as photocopying receipts. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view. The skimmer will typically use a small keypad to unobtrusively transcribe the 3 or 4-digit card security code that is not present on the magnetic strip. Many instances of skimming have been reported where the perpetrator has put a device over the card slot of an ATM, which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user's PIN at the same time. Skimming can be difficult for the typical cardholder to detect. If you conduct a physical inspection of the ATM you use, you could see a device that has been attached. Banks, however, are a different story. Given a large enough sample, it is fairly easy for the bank to detect that a skim occurred. The bank collects a list of all the cardholders that have complained about fraudulent transactions, and then uses data mining to discover relationships among the cardholders and the merchants they had used. For example, if many of the customers used one particular merchant, that merchant's terminals (devices used to authorize transactions) can be directly investigated. On a Thursday in late January, a GCF Bank customer notified us that her GCF Bank VISA Debit Card number had been used in Mexico without her authorization. The Bank immediately locked out this customer's card. At this time, the event was considered an isolated incident. On Friday, a second GCF Bank customer notified GCF that his card also had been used in Mexico without his authorization. This card was also immediately locked out. At this time, a possible connection was researched. However, upon questioning both customers, no exact link could be established but it was determined that the frauds were not isolated. The following Tuesday, four additional GCF Bank customers notified the GCF that their cards were also used without authorization in Mexico. These four cards were immediately locked out. Although a specific link could not be established at this point, the Bank believed there must be a connection as this was too great a number to be a coincidence. We quickly initiated an incident response and immediately took steps to prevent any additional transactions originating out of Mexico. GCF alerted its customers by posting an alert notice on the GCF Bank Home Page and sending an email to all GCFlash recipients to notify our customers that this event had occurred and that measures were being taken to protect their accounts. GCF continues to monitor this situation and look towards innovations that may prevent this type of event from occurring in the future. With the increasing threat of debit card fraud, you can rest assured that GCF Bank is doing all we can do to protect you, our valued customer. Currently, GCF is implementing Risk Management controls to lessen the inconvenience, embarrassment and potential monetary losses associated with debit card fraud. Beginning in early March, all GCF VISA Debit card transactions originating outside the U.S. will be blocked. If you plan on traveling outside the U.S. or using your GCF VISA Debit card for purchases originating outside the U.S., you'll need to notify your local branch and we'll make arrangements to ensure your debit card can be used in the country or countries where you'll be traveling or making a purchase. While we do realize that this new process may be cumbersome, GCF would like to remind you that this pales in comparison to the inconvenience that arises when an account is hijacked using a fraudulent VISA Debit card. Should you have any questions concerning this matter, please feel free to contact either of the following staff members:
2nd Flash:
ID THEFT SECURITY PRODUCTS
With identity theft being this generation's crime of choice, new products and features are introduced daily that promise to protect your personal information, reduce your fraud risk or protect you from becoming a victim. Yet some of these options may be a scam in themselves. How do you know which product is worth the cost and effort? Defense is only as effective as the front line. That's not only true in football. It also holds true for you. Shred unsolicited credit card offers and cash advance checks as soon as you open the envelope. Shop only on secure Web sites. Don't reply to emails requesting personal information or click on links embedded in a message. Diligence will reduce your risk, but not eliminate it altogether. At some point, you'll hand your credit card to a waiter who takes it around the corner to process your transaction. And with luck, it will be returned intact. But don't bet your entire fortune on it. Should the waiter lack integrity, he's now holding your credit card out of your sight. Even your most thorough efforts can't prevent him from stealing your account numbers. Credit monitoring services track all three credit bureaus on a regular basis and alert a customer based on options you select. If a new account is opened or your credit score changes, you'll be notified. These services cost around $15 per month. But the problem with such a service is that alerts are issued after the attempted fraud. You can minimize the damage by responding more quickly than if you discovered the attack on your own, but by that point you've already fallen victim. A better option is a credit freeze. Permitted in most states, a freeze automatically denies any incoming applications. You can remove the freeze if you're trying to open a new account and refreeze it as circumstances dictate. All major credit card companies offer identity theft insurance. The policies cover costs associated with recovering your credit standing such as legal fees, lost wages, etc. and average $12 per month. Think twice before purchasing this coverage. The Fair Credit Billing Act restricts fraud liability to $50 maximum, no matter how much was illegally charged to your card. And most card issuers will waive that $50 to keep your business. Bank of America and Citibank give card holders the option of placing their photo directly on their credit card. A cashier would notice if a card were presented by someone other than the one pictured. It's worthless in places where the cardholder skims the card himself through a reader at the end of the checkout counter or shopping online. One of the most effective means of protecting your credit card numbers is by using a virtual or one-time-use number generated by your card issuer. These numbers link to your real account, but you set the terms. Visit your card issuer's Web site to register for the service. When you're ready to shop, login to your account and use the temporary number provided. Not all credit card companies offer this service, so learn your options before you need them. Every major card company offers zero liability policies. Once you report an unauthorized transaction to your account, the policy reimburses you for any stolen amounts. Coverage varies from brand to brand. You'll find it detailed in the fine print of your card agreement. If you can't interpret their lingo, it's worth the trouble to call and ask a customer service agent for the details. Debit cards fall under separate regulations. Check with your bank for specific details relating to your ATM/Debit card. Financial News
There are many economic indicators released every month, often not saying the same thing. Today, the economic indicators are inflationary. Consumer confidence plunged while wholesale food, energy and medicine costs soared, pushing inflation up at the fastest pace in twenty-five years. The Labor Department released the Producer Price Index (PPI) Tuesday, which indicates that wholesale inflation jumped by 1 percent in January, more than double the increase that analysts had been expecting. The PPI measures the average price for a fixed group of capital and consumer goods used by producers, or manufacturers. Some of this inflation will get passed through to the consumer, tracked with the Consumer Price Index (CPI.) The PPI is considered a precursor of both consumer price inflation and profits. The ability to pass along price increases depends on the strength and competitiveness of the marketplace. Producer prices are more volatile than consumer prices. The CPI includes services components - which are more stable than goods - and the PPI does not. The CPI has the most impact with interest rate changes, although the PPI is a good starting point. Interest rates have a component that allow for inflation risk factors. A lender wants to be repaid with at least the same purchasing power as when the loan was made. So, changes in inflation lead to changes in interest rates. Consumer Confidence: The New York-based Conference Board based in New York reported that confidence fell to 75.0 in February, down from 87.3 in January. The drop was far below the lowest level since February 2003, just before the Iraq war. The survey of 5000 consumers is closely watched by the stock markets. For stocks, strong economic growth ends with corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. The goal is for the economy to balance just enough growth to not become inflationary. Today's National Market Rates
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In This Issue... 1st Flash: GCF VISA DEBIT CARD FRAUD 2nd Flash: ID THEFT SECURITY PRODUCTS Today's Market Rates On the World Wide Web Tip of the Week Financial News Past issues of GCFlash: February 19, 2008 Edition #442 February 12, 2008 Edition #441 February 5, 2008 Edition #440 January 29, 2008 Edition #439 Looking for articles from a past issue of GCFlash not listed above? Find them in our Knowledge Base!
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