Posted on : Dec.17,2006 14:49 KST
Replaced card’s records not deleted from system
The credit card industry is taking steps to bolster security after a card was copied and used overseas, even though the owner had changed over to a new card with the same company.
On December 13, a 40-year-old woman, identified as Lee, was shocked when her credit card company informed her that she had spent US$4,300 overseas using her old card. After investigating, she realized it was fraud, for though she had gone overseas in 2003, her card was used in Italy, where she had never visited. But Lee was even more vexed by the situation, as she had changed the card used in the transaction to a new one with more benefits after her overseas trip.
From November 2003, credit card companies replaced their computer networks, allowing old cards to automatically expire when customers obtained new ones. But for customers that replaced their credit cards before this period, their old card information was not deleted in the computer networks if the card’s owner did not request the company to do so. Since Lee’s card had not expired but had been replaced, it was still valid.
“Credit card counterfeiters must have forged Lee’s card, using transaction records during her overseas stay,” Lee’s credit card company said. “To prevent additional damages, we are discussing countermeasures.”
Lee will not have to pay the money because it was confirmed that she was in South Korea when the card was used.
Experts say credit card owners could avoid such damages if they ask their card companies to reject any overseas settlement after they return from overseas. In addition, customers should ask credit card companies to delete the record of any old cards from their system.
