Combat Card FraudOctober 28, 2015 12:17 pm
Energy One loses over $100K from fraudulent transactions in one year
Has your debit card ever been used fraudulently? Chances are, you or someone you know has had this unpleasant experience.
You get a call from the fraud department, asking if you’re in another state or country buying hundreds of dollars of goods. Of course not! You’re sitting at home. Now you have paperwork to fill out and your debit card has been shut down. It’s very inconvenient, not to mention a total violation.
Energy One took a loss of over $30,000 in just one weekend from those fraudulent transactions last year. The merchants do not reimburse us, and neither does the card network. That severely impacts our bottom line and we need to do something to curb those events. We need your help.
Beginning December 1, 2015 a PIN will be required to use your debit card at certain merchant types
Most of the fraudulent transactions occur at a handful of merchant types with a counterfeit card that has been created with your card number on it. The thief chooses “Credit” and signs for the purchase, and walks away with hundreds of dollars in ill-gotten goods. The stores are not required to check ID or validate signatures, so the only way to prevent those transactions from happening is to prevent the “Credit” option and force a PIN to be entered. The thief doesn’t have your PIN, so he or she will be declined and won’t get away with theft.
A PIN will be required to use your debit card at grocery, drug, and warehouse stores. If you choose “Credit” the transaction will be declined. This is where the majority of fraud occurs, and all these merchants have the ability to allow you to enter a PIN. Many already default to the “Debit” option and prompt you for your PIN.
Some examples are Wal-Mart, Target, HEB, and any other grocery store. Also Walgreens, CVS, and any other drug store. A PIN will also be required at Sam’s Club and Costco, and other warehouse club stores. This list provides examples and is not all-inclusive, and locally owned stores are included, not just national chains. If you are at a store and your card gets declined as a Credit purchase, try it again and choose Debit this time.
Frequently Asked Questions
When does this go into effect?
December 1, 2015
What will happen if I choose “Credit” so I can sign for my purchase?
It will be declined. The only way to proceed is to choose “Debit” and enter your PIN.
I don’t even know my PIN!
You can choose whatever 4 digit code you want. Get your card out and call 1-800-992-3808. Enter the requested information and then you can set a PIN. It’s effective immediately. Be sure it’s something you can remember and do not write it down anywhere.
I don’t want to enter my PIN, it’s my secret code
Your transaction will not be approved without it. You can change it to something else if you want to, but make sure it’s something you can remember without writing it down. If you have it written down and someone uses your card and PIN, you will be liable for the loss.
Isn’t it unsafe to use my PIN?
The short answer is No. The long answer is that your card details can be captured and compromised by a merchant whether you use your PIN or not. That’s how this happens in the first place. With your PIN, a bad guy could perform more transaction types than just a Credit purchase, but you are not liable for fraudulent transactions. This is the only way to prevent 99% of the fraudulent transactions we lose money on.
Should I just use my PIN all the time then?
You using your PIN is not what will prevent fraud. The bad guys not being able to use your card info as “Credit” and sign is what will prevent it. You should do whatever is most convenient and preferable, except at the places where Credit/signature purchases are not allowed and you must use your PIN.
What else can I do to prevent fraud? Stop shopping online?
Shopping online is not where the majority of card numbers get compromised; it mostly happens at stores with bad information security and they’re hard to spot. You should definitely register your card with Verified by Visa so that a password will have to be entered when your card is used for online shopping. Even if you never shop online, this will prevent someone else from doing it!
I still need to talk about this
No problem! Call us at 918-699-7100 or 1-800-364-3628. Select option 4 for Card Services, or enter extension 7127.