July 7, 2007

Huh? Fraud Protection And Your Bank Card

Don't tell me it's not worth fightin' for
I can't help it - there's nothin' I want more
Ya know it's true
Everything I do - I do it for you
--- Bryan Adams

My bank is doing "everything possible" to protect me from fraudulent activities. That's reassuring. They're up to date with "new fraud protection and detection technologies". I'd expect nothing less.

I'm happy. I don't want self-appointed Robin Hoods stealing from me. I bet there's great news. Let's read on. They are "proposing to take the further step of adjusting the daily limits" on my bank card. Downward. Huh?

Maximum cash withdrawals are being slashed by 50% from $1,000 to $500. Debit card purchases drop from $3,000 to $1,000. That's 67% less!

I don't mind these changes. Making spending harder = Making saving easier. I just need to freeze my credit card in a tin can full of water (see Three Practical Ways To Increase Your Net Worth). I'm worried by the subtext: the war against fraud is being lost.

Everything Possible
Wouldn't doing everything possible include
  • photo ID on the bank card
  • embedded security better than a magnetic strip
  • text messages to your cell phone whenever a transaction takes place
Those measures would be reassuring. Chopping usage limits sends the opposite message.

2 comments:

FourPillars said...

I haven't heard of this.

What bank is this? Are these changes mandatory?

Mike

Promod said...

fourpillars, I thought millions of Canadians had received similar letters. Maybe not.

The changes occur by default ("negative option billing") but appear negotiable by calling the bank. Would your liability increase if you don't follow their recommendations and fraud occurs?

Since my point was about the subtext of the message, the specific bank doesn't really matter (email me at promodblogs at gmail dot com if you have to know). You can read the letter by clicking on the graphic.