Watch your credit card at restaurants

Here’s a new credit card fraud gambit that ranks a “10″ on the outrage meter.

A U.S. Secret Service investigation has revealed a string of credit card thefts in Washington, D.C. area restaurants. Waiters at local eateries reportedly stole credit card numbers and used the data to ring up luxurious purchase at elite retailers like Gucci and Barney’s of New York.

In one case, Secret Service investigators arrested Nicole Ward, a waitress at the Cheesecake Factory, on charges of stealing $117,000 from restaurant customers in 2008 and 2009. The Secret Service alleges that Ward was working on behalf of a larger criminal organization that specialized in credit card fraud. The syndicate reportedly paid Ward $40 per stolen card, for a total of about $5,000, the Secret Service said.

Ward’s method was both effective and frightening – especially to any credit card holder. When a diner paid his or her tab with plastic, Ward and two accomplices used electronic ‘skimming’ devices allegedly provided by the credit card fraud outfit that could read and download key credit card data. The syndicate reportedly took the card data and slapped the numbers on fraudulent credit cards and used them to rack up tens of thousands of dollars in bogus purchases.

In 2009, the Secret Service was notified by Citibank that numerous fraudulent charges were showing up on credit cards previously used at the Cheesecake Factory location that employed Ward. From there, it was short work to link Ward and her accomplices to the cards from the employee identification number that was printed on the card receipts.

The new restaurant scam isn’t restricted to Washington, D.C. either. Police reports from New Orleans claim a waitress at a local Bubba Gump Shrimp restaurant sold 50 fraudulently-obtained credit card numbers using the same scam. Police in Buffalo, N.Y. report similar crimes.

The good news is that most restaurants have systems in place – particularly the employee I.D. number that appears on card receipts – to eventually catch up to wayward waiters. But that doesn’t mean you’re out of the woods – a resourceful wait-staffer could still run off and take a picture of your credit card with an illegally-obtained device, or even a simple cell phone.

So this holiday season, be aware of where your credit card goes when it leaves your hands and is hauled away by a waiter or waitress. It could be taking an expensive trip and racking up thousands of dollars in fraudulent credit card charges.

Police arrest 3 and search for the 4th in a large credit card skimming case.

Police say that one of the suspects worked at a local Tyler Texas restaurant and obtained hundreds of customers cards by using an "access device" also known as a skimmer. When police searched the residence they found credit card making equipment and hundreds of counterfeit credit cards. Who are you handing your card over to when dining out?

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2010 timline of skimming cases

The reports of skimming and payment card fraud in this list are taken from the Identity Theft Research Center's data breach list and ISMG's BankInfoSecurity.com coverage. So far in 2010, 45 skimming and payment fraud incidents have occurred in the United States. What follows are the reported skimming events and card fraud incidents and how the businesses or financial institutions were attacked.

Check out the time line: [CLICK HERE]

Skimming Ring Busted

Group of four arrested after skimming ring busted. The group started in Michigan skimming and using cards. Their road trip ended in Arkansas when they were apprehended at Wal-Mart. See more at the link below.

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Debit Cards are being used more than credit

Shoppers moving to use Debit Cards or Cash this holiday season. Black Friday 2010, 72.4% of purchases made were by Debit cards, cash, and or check. Does your business have a solution for pin debit with the increase? Side-note: the UK announced today that Debit cards are now being used more than cash and credit.

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Here are a few quick tips to help prevent Credit/Debit card fraud from happening to you.

• Be hyper-vigilant about checking your account. This is most important. Most people don't check every day, but they should start. Waiting for too long means you're more liable for charges, and once your money's gone, it's gone. If it's a large amount of money and you waited too long to see it, you could have to wait for months for the bank to issue your money back and figure out what happened.

• Never let your card out of your sight/hand. If you have to hand your card over, make sure you keep an eye on the transaction. If you see something happen, report it to management and cancel your card.

• Look at the fine print. Banks vary when it comes to how much you might be liable for if you become a victim of fraud. Make sure you know all the details beforehand.

• Shred your statements. Same goes for receipts. There's so much information that can be gathered by someone who goes through your trash. Most banks have account and credit card numbers printed right there on your statement for the thieves to see. If you can, go for paperless statements and get everything sent to you via email.

• Have an emergency account. If a thief manages to drain your entire account, you would most not have access to additional funds. The banks will shut off your cards and there'd be no way to pay the rent or bills and your credit would suffer. It's important to set up a separate account for emergencies such as this one.

Has this kind of fraud ever happened to you? What do you do to avoid it?

Hackers Hit Hotels, Steal Credit Card Numbers from Guests

Wyndham Hotels revealed that "a sophisticated hacker" had penetrated their computer system. Customers at up to 28 Wyndham Hotels and Resorts may have had their credit cards compromised

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