The new credit card crims: Gottliebsen

Today I want to share a personal experience with you and describe what happened to me when my credit card number (not card) was stolen.

I have always known that if my card was stolen or lost, the thief or finder could use it to buy goods or services. Now I realise that my number is just as dangerous and represents instant purchasing power in the hands of the wrong people.

I hasten to add two important riders – I was in South Africa when the theft occurred and the Australian bank which issued the card, without any quibble, is going to make good all losses. They also helped with liquidity.

Nevertheless, let me tell you what happened and the credit card strategies I am planning for my next overseas trip.

Although we had used the card in restaurants and retail stores in Johannesburg, when I went to a sports store I was distracted for about 30 seconds – enough time for a mobile phone to photograph the card. As I walked out of the shop I had no idea what would happen in the next 48 hours.

The next day we travelled to the whale viewing town of Hermanus and a day later I tried to use the card at a restaurant and later at an ATM. It was clear something was wrong. A phone call to the bank showed that 90 transactions had hit the account before the bank froze the account. Liquor outlets figured prominently.

At the time I felt bad. And while the bank treated me well, the story might have been different had I lost the card and not discovered the loss for a day or so. On the next trip I will use credit cards with small balances or cash for routine purchases.

I really can’t understand why people want to use or threaten violence to steal money when using stolen credit card numbers is so much safer and easier. Eventually the penny will drop in the thieving community. The people who raided my card probably saw it as a dress rehearsal for the FIFA World Cup in 2010. But it could happen in any city in the world, including Australia.

I am sure the credit card companies are looking hard at ways to make sure that a credit card number is not like cash in the pocket and at ways to act before 90 transactions go through.

But at least in Johannesburg in 2009 it’s open slather. Meanwhile, I guess high credit card loan rates and retail store charges are required to help pay for the losses.

This article first appeared on Business Spectator.