Credit Card Fraud Citibank (Costco)

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Apr 25, 2019
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I got a call from Citibank one evening questioning a couple charges being made to my Citibank (Costco) card. One was to a liquor store ($49) and another to a clothing store ($1197). I said neither myself or my husband made those purchases, we had never visited either establishment (both on the south side of Chicago; we live far north side), and we both had our cards in our possession at all times. The representative said thank you and I hung up thinking the matter was solved. Wrong! Now six weeks later and many phone calls to Citibank’s fraud department they insist I am liable because the charges are being reported as being made by a chip card and since we stated we were in possession of said chip cards we must have been present and made both purchases. I’ve filed a police report, have an email from Citi Alerts stating those pending charges would NOT post to my account (but then they did ten days later), been told that there were several attempts at both locations that were denied before both charges were approved, and wasted countless hours on the phone and losing sleep. How do I prove something we didn’t do?!?
 
Sep 19, 2015
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I got a call from Citibank one evening questioning a couple charges being made to my Citibank (Costco) card. One was to a liquor store ($49) and another to a clothing store ($1197). I said neither myself or my husband made those purchases, we had never visited either establishment (both on the south side of Chicago; we live far north side), and we both had our cards in our possession at all times. The representative said thank you and I hung up thinking the matter was solved. Wrong! Now six weeks later and many phone calls to Citibank’s fraud department they insist I am liable because the charges are being reported as being made by a chip card and since we stated we were in possession of said chip cards we must have been present and made both purchases. I’ve filed a police report, have an email from Citi Alerts stating those pending charges would NOT post to my account (but then they did ten days later), been told that there were several attempts at both locations that were denied before both charges were approved, and wasted countless hours on the phone and losing sleep. How do I prove something we didn’t do?!?
I too am perplexed that you did not have the card closed immediately after bogus charges in excess of 1,000.

Is it possible that the charges were made by swiping a cloned card with a magnetic strip? I still see places that do not have the chip machines. Or if the thief used one of the tap methods.

Oh and chip and pin cards can be cloned:

https://www.kaspersky.com/blog/chip-n-pin-cloning/21502/
 
Likes: divinemsmstl
Jan 6, 2015
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I too am perplexed that you did not have the card closed immediately after bogus charges in excess of 1,000.

Is it possible that the charges were made by swiping a cloned card with a magnetic strip? I still see places that do not have the chip machines. Or if the thief used one of the tap methods.

Oh and chip and pin cards can be cloned:

https://www.kaspersky.com/blog/chip-n-pin-cloning/21502/
According to my CC provider, they can tell for each transaction the method of the charge, whether it's via insert (chip), swipe, tap, or manual entry . . .
 
Sep 19, 2015
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According to my CC provider, they can tell for each transaction the method of the charge, whether it's via insert (chip), swipe, tap, or manual entry . . .
I am wondering if the charge was done via the chip method as the OP said that "there were several attempts at both locations that were denied before both charges were approved" -- and did the bank look into this issue? Or is this a merchant where there may be questionable practices?
 
Likes: VoR61
Jan 6, 2015
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I am wondering if the charge was done via the chip method as the OP said that "there were several attempts at both locations that were denied before both charges were approved" -- and did the bank look into this issue? Or is this a merchant where there may be questionable practices?
Judgemenot posted that Citbank said "the charges are being reported as being made by a chip card". I take that to mean that the "chip method" was used. However, you raise some important questions . . .
 
Jan 6, 2015
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I am wondering if the charge was done via the chip method as the OP said that "there were several attempts at both locations that were denied before both charges were approved" -- and did the bank look into this issue? Or is this a merchant where there may be questionable practices?
You got me thinking, Christina. Perhaps Judgemenot should get clarification. Were the purchases made "using a chip card", or "via a chip transaction".
 

jsn55

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Dec 26, 2014
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This post raises a VERY LARGE red flag. If there is ever the slightest indication that your credit card account may be compromised, CANCEL THE CARD. Cancel it immediately. Doesn't matter if you have 95 automatic monthly payments on that card and you have to change them all and you're on your way to Timbuktu for a vacation ... cancel the card.

Thank you so much for posting, judgemenot, others can benefit from your experience. I hope things turn out well for you.
 
Sep 19, 2015
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When our bank called about our debit card being compromised, THEY closed the card immediately. I can't believe that Citibank wouldn't have just done that. She told them she didn't make the charge. I think part of the blame lays with them for not closing the card for judgemenot.
Very true, this is so strange, why would the Fraud department allow a compromised card to remain active?
 
Oct 18, 2017
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This exact thing happened to us a few weeks ago. My husband received a text asking if several charges were valid. He called the CC company and stated they were not made by us. The CC company cancelled the cards immediately and issued new ones. The fraudulent charges were taken off and we didn't have to pay. IF they company had not cancelled the cards, we would have.
 
Apr 25, 2019
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The only reason why a card would reamin active is if the cardholder tells the fraud team not to cancel the card.
This exact thing happened to us a few weeks ago. My husband received a text asking if several charges were valid. He called the CC company and stated they were not made by us. The CC company cancelled the cards immediately and issued new ones. The fraudulent charges were taken off and we didn't have to pay. IF they company had not cancelled the cards, we would have.
Hi all,

Sorry for the confusion. Of course the cards were cancelled (by Citibank) when I received the initial call from them. The fraudulent charges had already been made. Citi is saying *we* made the cards because a chip card was used and *I* am saying we didn’t make the charge with our card because we were nowhere near the establishments at the time of the charges. So very frustrating! I have just written and mailed (FedEx and certified) two Citibank VPs. We’ll see if that helps...
 

AMA

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Dec 11, 2014
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I'm so tired of all this hype about CHIP cards being "more secure." They are NOT. The reason they're secure in Europe and the rest of the world is that those countries require a PIN for each transaction. These ones in the US can be picked up and used by anyone. Stores don't even require a signature anymore. OP, did you have a PIN code on your card? I expect not.
 
Jan 6, 2015
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Hi all,

Sorry for the confusion. Of course the cards were cancelled (by Citibank) when I received the initial call from them. The fraudulent charges had already been made. Citi is saying *we* made the cards because a chip card was used and *I* am saying we didn’t make the charge with our card because we were nowhere near the establishments at the time of the charges. So very frustrating! I have just written and mailed (FedEx and certified) two Citibank VPs. We’ll see if that helps...
A chip "card" being "used" does not mean it had to be yours. A chip "transaction" would mean it WAS yours.

And that could explain why "there were several attempts at both locations that were denied before both charges were approved".
 
Likes: Judgemenot