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Swiping credit card at restaurant table can preclude skimming, cheating
Pittsburgh Post-Gazette ^ | July 26, 2007 | Patricia Sabatini

Posted on 07/26/2007 5:03:45 AM PDT by rightwingintelligentsia

Every think twice about handing over a credit or debit card to your restaurant server when paying the check? Maybe you should. While most of the time the payment goes through just fine, when your card leaves your sight, nasty things can happen. Occasionally, crooks use devices called skimmers to steal account information that's embedded in a card's magnetic stripe, which they sell or use to make counterfeit cards to raid a bank account or run up fraudulent bills.

It's estimated 70 percent of that type of card fraud, known as skimming, happens in restaurants, one of the last places where customers give their cards to someone who disappears into a back room to process the transaction.

In 2001, a credit card ring that involved wait staff stole information from customers at Don Pablo's Mexican Kitchen in North Fayette and, prosecutors said, and made fraudulent purchases totaling $16,861.

That's not the only type of skulduggery that can happen. Ever hear of tip fraud? It happens when a server alters the tip when entering the final bill in the payment system. You could be charged an extra 50 cents, a few bucks or more, but unless you cross-check your receipts with your monthly statements, you probably wouldn't catch it.

Now, a new technology is being pushed by payment systems giant Verifone that's designed to speed transactions and combat fraud by keeping cards in customers' hands.

(Excerpt) Read more at post-gazette.com ...


TOPICS: Business/Economy; Crime/Corruption; Miscellaneous
KEYWORDS: bankcards; creditcards; debitcards; fraud; identitytheft; idtheft; restaurants; skimming
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To: Terabitten

We have a local Mexican restaurant that was doing the same thing. People that had used either debit or credit cards at the restaurant found that their accounts had hundreds of dollars in charges. The charges were traced to Mexico a day after they had eaten at the restaurant in Indiana. I believe the restaurant is about to go under from the bad publicity.


21 posted on 07/26/2007 5:36:01 AM PDT by caver (Yes, I did crawl out of a hole in the ground.)
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To: rightwingintelligentsia

Can’t trust anyone with your card bump


22 posted on 07/26/2007 5:36:34 AM PDT by Edgerunner (If you won't let the military fight your battles, you will have to. Keep your powder dry...)
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To: Larry Lucido
You should also keep a “Willard” organizer nearby so you can calculate the tip.

IMO, if you can't calculate 15 % in your head, you should be eating at home.

23 posted on 07/26/2007 5:39:56 AM PDT by Nonstatist
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To: scan59

You’ll want to see this one, too.


24 posted on 07/26/2007 5:40:55 AM PDT by scan58 (Diversity results in a collection of unconnected individuals.)
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To: rightwingintelligentsia
You have got to be kidding me!

China uses this system in restaurants, filling stations, outdoor markets, and many other businesses in all major cities, and thousands of less major ones. It’s been around for a good while. I swiped a card at my table in two establishments just today in Shanghai.

You swipe the card, enter your PIN number, press enter, and then they take the hand-held unit (about the size of a large scientific calculator) back to the counter and drop it in its base, connected to the modems.

Do you know that mobile phones are much easier to use in China and the Philippines, too, and are much less expensive than in the USA.

what in the world is going on in the USA ? Why do we see so many reports of “NEW” stuff in the USA that is old stuff abroad.

I hate to say it, but I’ll tell you another area that seems to be in more advanced use in Asia. Packaging. Yes, the varieties of types and applications of product packaging is a good ways ahead of the USA in may areas of Asia.

I don’t want to offer any reasons for all of this. I have some ideas.

25 posted on 07/26/2007 5:42:33 AM PDT by John Leland 1789
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To: rightwingintelligentsia

In 2002 I visited Paris. Almost every restaurant had hand held credit card readers that were brought to the table and printed a receipt on the spot. My credit cards never left my sight. Surely the technology is not so esoteric that we couldn’t have had it in 2002 in the US as well?


26 posted on 07/26/2007 5:43:20 AM PDT by CholeraJoe ("It's like being a house elf, but without the job satisfaction.")
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To: Red in Blue PA; from occupied ga
Debit cards (that are Visa or MasterCard debit cards) have exactly the same protection as a regular credit card. You can go to Visa's website and check the security information and if the card has the Visa logo and hologram you are protected just as if it was a credit card. You are still required to report it and you will probably stand the first $50 (or whatever your agreement states) but if someone steals your debit card and takes your money the bank will put it back.

I've used nothing but debit cards for over 12 years and I have never had even one single problem.

27 posted on 07/26/2007 5:53:12 AM PDT by Pablo64 (Ask me about my alpacas!)
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To: CholeraJoe
Surely the technology is not so esoteric that we couldn’t have had it in 2002 in the US as well?

I just asked the husband if we'd ever been to a restaurant that had a cc reader (I couldn't remember and we eat out alot). He said "no". Heck, I'd be happy to have it in the US in 2007.

28 posted on 07/26/2007 5:55:23 AM PDT by scan58 (Diversity results in a collection of unconnected individuals.)
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To: Pablo64
have exactly the same protection as a regular credit card.

Not true according the the Clark Howard web site. www.clarkhoward.com

29 posted on 07/26/2007 5:58:40 AM PDT by from occupied ga (Your most dangerous enemy is your own government, Benito Guilinni a short man in search of a balcony)
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To: Larry Lucido

It does other things!!!


30 posted on 07/26/2007 6:04:50 AM PDT by HOTTIEBOY
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To: Nonstatist
IMO, if you can't calculate 15 % in your head, you should be eating at home.

Well you just wiped out 80% of the resturant business.
Whats 15% of $36.24? quickly quickly quickly now add it to get the total, quickly quickly.

New Communist Reform Law: Those who are not Fields Medalists are not allowed in resturants.

What scares me is how boring a resturant would be if only people that could calculate 15% were there.
31 posted on 07/26/2007 6:16:29 AM PDT by HOTTIEBOY
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To: hunter112

I’m sorry to tell you, but even in the supermarket, you are not safe from this type of theft.

http://www.boston.com/business/globe/articles/2007/02/19/stop__shop_reports_credit_data_was_stolen/

The Pakistanis who did this flew all the way from CA to RI to pull this caper off.


32 posted on 07/26/2007 6:30:08 AM PDT by ishabibble (ALL-AMERICAN INFIDEL)
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To: Terabitten
The reason I use debit cards is simple - I'm not disciplined enough to stay out of credit card debt.

Well.... there's this thing called cash. And another thing called checks. They're kind of old fashioned, but they work.

Use the envelope system and a budget. It worked for Dave Ramsey.

33 posted on 07/26/2007 6:31:04 AM PDT by gunservative
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To: Terabitten

My debit card turned up missing with a $350 hit at a local walmart.......I had the money back in my account within days. Could have messed up a mortgage payment or something, but it didn’t. We were lucky.


34 posted on 07/26/2007 6:33:38 AM PDT by tioga (I'll take Duncan Hunter or Fred Thompson for President. Pick one.)
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To: Larry Lucido

For good service, 20%, which is pretty easy to figure in your head.

For bad service, 0%, which is even easier to figure.

Or if you’re really bad at figuring in your head, $1 per person if the meals are around $5 each, or $2 a person if they’re around $10 each. And another $1 per person for every $5 per meal (’per meal’ includes drinks and desert).


35 posted on 07/26/2007 6:38:29 AM PDT by savedbygrace (SECURE THE BORDERS FIRST (I'M YELLING ON PURPOSE))
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To: ishabibble

Wow, thanks! I’ve shopped at the local “Stop & Shop”, had no idea they could rig those machines for fraud. I guess cash is the only 100% safe way, unless you get mugged...


36 posted on 07/26/2007 6:41:37 AM PDT by hunter112 (Change will happen when very good men are forced to do very bad things.)
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To: from occupied ga

I guess you are one of those dinosaurs that whips out their checkbook and cause the checkout lanes to back up at the grocery store? Everytime I see a checkbook I roll my eyes that they still exist.


37 posted on 07/26/2007 6:43:27 AM PDT by LetsRok
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To: goldstategop
Keep your PIN number in your head so no one can access your bank account.

What about the voices in my head? Won't they steal it? ;^)

38 posted on 07/26/2007 6:45:35 AM PDT by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
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To: rightwingintelligentsia
These "solutions" don't address the basic problem: one set of numbers gives unlimited access to your account, and you must reveal that complete set to the person you're trying to pay. The solution is limited access: if you have to pay someone, say, $41.68, you should be able to generate a set of numbers there and then that give access to that much from your account and no more.

This isn't yet in place because (1) using such a system is a tiny bit more difficult than handing over a card, and most consumers aren't willing to take the trouble, and (2) such an innovation would be one step closer to digital cash, a technology which some big governments (like the U.S.) firmly oppose.
39 posted on 07/26/2007 6:48:05 AM PDT by xenophiles
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To: LetsRok
I guess you are one of those dinosaurs that whips out their checkbook and cause the checkout lanes to back up at the grocery store?

Then you would guess wrong - I use a credit card or cash. I would guess that you're one of those belligerant douche bags on fr that's too dull to understand a position and immediately starts to flame someone rather than figure out what's going on.

40 posted on 07/26/2007 6:48:44 AM PDT by from occupied ga (Your most dangerous enemy is your own government, Benito Guilinni a short man in search of a balcony)
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