13 AUG 2013 - 1731 CDT

What follows is not advertising for my insurance company.  It is
based on my own credit card experience.

I want to add an important detail to Dave Sumner's message about
compromised credit cards.  Many compromised credit cards are not the
result of careless credit card use or identity theft using stolen
credit cards and credit card numbers.

I was informed by my USAA (United Services Automobile Association)
security department that the industry-wide algorithm that creates the
card account number and the companion security code was compromised
about six years ago.

The machines used to manufacture credit cards are readily available.
With this algorithm and very little computer programming knowledge,
anybody can create a credit card that works.  Anybody's name can be
put on these bogus cards.  USAA's computer system continuously monitors
all of its credit card transactions and will instantly lock down an
account that shows card-testing and other unusual activity.

The banking and credit card industries do not want to talk about this
ever-growing problem because of the potential world-wide financial
upheaval that could result.  So far, the industry is simply absorbing
these losses as part of the cost of doing business.  However, it is 
the legitimate card users who ultimately pay this cost.

This has happened to me three times the past six years through no fault
of mine or USAA.  I can contact U.S. - based security personnel tool-free
24-7, if I see a problem or the computer has locked my credit card.  I
have never lost a penny and I do not have to file a lot of claims and 
statements.

BTW, I refer to the USAA as my USAA because all USAA members are the
owners of USAA.

- Dick, W9GIG


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