While shopping for groceries this week, my wife turned from her cart when a man stumbled and fell in the aisle. Less than 30 seconds later, she noticed that her wallet was missing from her purse which was sitting in the cart. Total distance from her wallet: 5 feet.
Within 3 minutes, she’d called me and alerted the store about what had happened. Within 15 minutes, I’d blocked our ATM card, our credit card, and a specialty retailer card. Total Time: 18 minutes and 30 seconds.
What had the robbery netted? A $1,000 gift card purchased at a kiosk at a nearby retailer with our credit card. A second $1,000 gift card purchased at the same kiosk with our ATM card (I was under the mistaken impression that this would require the PIN number). And a $5,000 gift card purchased with the specialty retailer card. Total take: $7,000. In just 18 1/2 minutes.
Of course, the thieves also got away with about $150 in cash and my wife’s driver license. She was worried that we were going to be robbed that evening “because they now had our address” but I convinced her that “having our address” made us no more likely to be robbed. We also freeze our credit which offers us some protection from identity theft. So this gave us some comfort.
After this incident, I wondered just how much “old fashioned” credit card fraud still exists in the United States. As it turns out, quite a bit, as 23% of the $3 billion in annual credit card fraud is still the result of lost or stolen cards. I was surprised at this number given today’s more sophisticated identity theft and forgery schemes.
As often is the case with fraud though, the aftermath can be even more costly than the initial theft. Financially, even though we were not directly responsible for the fraudulent transactions, in the end, we pay through higher fees and rates. And of course, it’s very difficult to assign a cost to the trauma of being robbed at your neighborhood grocery store.
The lesson in all of this for me? While it’s important to protect your identity online, don’t forget that thieves still snatch wallets, look for credit card offers in your mailbox and trash, and call your home to try to trick or intimidate you into providing sensitive information.