New Scientist 1998; 160(2161): 62
First posted 20.2.02

Internet fraud

I found your article about new users of Compuserve being sent dubious requests for their credit card numbers interesting. But the problem of internet fraud is much more widespread than it suggests. Recently after making a purchase over the web with my credit card I began to receive monthly bills of US$14.95 from a company I'd never heard of and certainly never bought anything from. I rang my bank and had these charges reversed and after six months they stopped coming through. However, this month I again have another unauthorised charge from another company I have never heard of, this time for US$19.95.

There are at least three sources of such unauthorised charges that I know of. The first (and most straight-forward) involves bogus companies getting hold of your credit card number by offering services they will charge you for but never deliver. The second involves bogus companies who somehow get hold of your credit card number by being related to companies you've bought something from, who then send through a few unauthorised charges of their own. I presume that lists of valid credit card numbers, just like lists of valid e-mail addresses, are bought and sold between disreputable companies on the web so that they can profit by sending through unauthorised charges of this sort. The third way unauthorised charges can appear on your credit card statement is perhaps the most insidious and can happen even if you've never bought anything over the web. There exists software utilities which can fabricate valid credit card numbers which can then be used for purchases or unauthorised charges by the user of the utility.

All this means it is becoming increasingly important to carefully read your credit card statement each month. When making purchases over the web use a secure link if the company you are dealing with provides one, and stay away from dodgey sounding deals. Free offers are rarely free.

Craig Webster
Reference
  1. "Spam scam nets newbies" New Scientist 1998; 160(2158): 7.

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