Credit card holders who notice an unexpected rise in their debt may have thieves to blame.
Prosecutors say that waiters in more than three dozen restaurants in New York and other cities took credit card information from unsuspecting customers and gave it to people who have made more than three million dollars in unauthorized charges.
More than a dozen people have been indicted on charges connected with the massive credit card fraud, which apparently took place in New York, Florida, New Hampshire, New Jersey, and Connecticut. Those facing charges are accused of larceny and conspiracy. Apparently, some of the suspects worked in restaurants along side the waiters.
Interestingly enough, the fraud has been going on for quite some time. Investigators say that it dates all the way back to November of 2005. The individuals involved allegedly used the information to create counterfeit credit cards, leading to the fraud.
In light of this news, charge card customers are being asked to be more scrupulous than ever in handling their sensitive financial information. It takes only one unscrupulous individual to wreak havoc on an individual's credit.
Visa reports that restaurants are, in fact, the most common location for credit card information to be stolen from. In fact, 40 percent of all credit card theft takes place at food establishments.
While dishonest waiters may be one culprit, the majority of the thefts happen when hackers co-opt a restaurant's computer system. In this way, thieves can easily steal sensitive credit card information. In response, Visa is working to punish restaurants that don't store their credit card information is a safe manner. However, the National Restaurant Association has denied that food outlets are more vulnerable to credit card theft than other businesses. The group maintains that clothing chains and other companies are just as likely to be targets of credit card theft.
Tom Smith
6th May 2007
More Information:
- Credit Cards Gone Wrong - Credit cards always seem like a good idea at first. Even if you've been burned in the past, when money gets tight, the shiny plastic rectangles seem like the perfect quick fix for any situation.
- Top Ten Credit Card Don'ts - If you own a credit card, there are some specific things that you should NEVER do! Here’s our list of the top ten things to avoid with your card.
- Top Ten Credit Card Mistakes - Nana didn’t believe in credit. In her eyes, if you couldn’t afford to pay for it before you took it home, then you shouldn’t have it. And in Nana’s world, that worked just fine.
