I was on a trip recently staying in a hotel room as part of a group. All of the rooms had been reserved as a group and the single credit card provided at check-in would be used to pay for all of them. I didn't need to even show my card, only my ID.
Several nights into the stay I received a call just before midnight. I was already asleep so I turned on the light and answered the phone. It went something like this:
This is the front desk. The card we have on file for your room is invalid so we're going to need a new card to keep on file for your room. This is only for incidentals so it won't be charged unless there are additional fees from your room like room service.
Now I've already told you it's a scam but to my sleepy head it seemed quite legit since I knew the card on file didn't match my name. I knew I wouldn't have any incidentals so I wasn't too worried about my card getting charged. Only after I gave the person my credit card and hung up did I start questioning it. The front desk shouldn't call so late at night. Oh well, I'll just have to watch for any funny charges.
Fortunately I have my credit card set up to email me for any account activity, no matter how small. This morning I got an email indicating a $667 charge on my account. Someone was buying stereo equipment online with my card. Within minutes of the charge I called and disputed it. My card has been cancelled and a new card is being sent overnight.
The moral of this story reinforces several topics that come up here regularly on /r/personalfinance and even someone who's normally careful might fall victim to a clever scam like this.
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Don't ever give a card number or other personal information to someone who calls you. Had I been thinking clearly I should have just said "I'll come down in the morning an provide you with a card".
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Never use a debit card. In this case I disputed it immediately and my credit card company fraud team was going to contact the merchant to investigate. My account has already been credited with the disputed amount pending the results of the investigation. Presumably due to my immediate action the merchant would not ship the merchandise to the scammer and no money will ever actually change hands. Had I used a debit card the money would already be gone from my account and I'd have to wait to get it back.
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Set alerts on your account. When I buy groceries with my credit card I typically get the email showing the store and amount charged before I even get out the door. It's reassuring to always get notified of charges. Without this notification I may have never even noticed the fraud since my bills are all just paid automatically each month.
Submitted April 22, 2019 at 07:39PM by mlw72z http://bit.ly/2vpY4ap
