Credit Card Fraud Running Rampant in Kalamazoo

Credit card fraud has become an increasing problem in Kalamazoo County over the past few years. The Kalamazoo County Sheriff’s Office has been investigating numerous reports of suspicious phone calls from scammers pretending to be from financial institutions in order to steal victims’ credit card information, clone their cards, and rack up fraudulent charges—a type of fraud that seems to be on the rise locally.

In one recent case reported in February 2019, callers disguising themselves as bank representatives contacted individuals claiming to have noticed suspicious activity on their accounts. They then asked for the PIN numbers and 3-digit security codes on the back of victims’ credit or debit cards. Once obtained, the scammers used the information to clone the cards and commit multiple fraudulent transactions[1].

Surveillance footage captured one suspect actually using a cloned card at local businesses. Police asked the public for help identifying the individual pictured, hoping to crack down on what seems to be an organized credit card fraud ring operating in the area.

In another local case from April 2014, two suspects appeared to be manufacturing fake credit cards and IDs and using them to buy gift cards at a Portage Target store. When police attempted to confront them, it led to a high-speed 90-mile chase down I-94 before they were eventually apprehended. Investigators believe the pair may have been involved in multiple instances of credit card fraud across the region[2].

Both of these cases illustrate the boldness and sophistication that some fraudsters are employing to steal identities and use cloned cards or manufactured counterfeit cards to ring up fraudulent charges. It’s not just isolated incidents—it appears to be organized criminal groups systematically targeting the Kalamazoo area specifically to carry out large-scale credit card fraud schemes.

How Criminals Commit Credit Card Fraud

Credit card fraudsters employ a variety of clever and ruthless tactics to steal personal information and exploit it for financial gain. Some of the most common methods include:

• Skimming Devices: Thieves install small devices on ATM machines, gas pumps, and other card readers that secretly scan and store credit/debit card information when users swipe their cards. The information is later retrieved from the device and used to make counterfeit cards.
• Phishing Emails: Fraudsters send fake emails impersonating banks, credit card companies, or online retailers to trick users into entering their personal and financial information, which is then used to make unauthorized purchases or clone cards.
• Data Breaches: Major consumer data breaches have exposed millions of credit card numbers which criminals readily buy, sell, and use for fraudulent transactions. The huge Equifax breach in 2017 compromised 143 million Americans’ data.
• Mail Theft: Fraudsters steal mail containing new credit cards, account statements, or other sensitive information they can use to commit identity theft and apply for cards to rack up fraudulent charges.
• Fake Merchant Accounts: Scammers set up online retailer accounts under false business names and identities specifically to process fraudulent purchases made with stolen card information. This makes the fraud harder to detect and trace back to them.

Alarming Statistics on Credit Card Fraud

Some statistics that highlight the gravity of the credit card fraud problem nationwide:

• Credit card fraud leads to $24 billion in losses every year in the U.S.[3]. That’s around $130 per American adult.
• There were 13.4 million victims of credit card fraud in 2020 alone[4]. Over 85,000 cases per day.
• Fraudulent online purchases have jumped over 250% since 2015 as more commerce moves online where fraud is easier to perpetrate[5].
• Mail theft and “check washing” increased by a whopping 661% during the pandemic.
• Friendly fraud makes up 15-20% of all credit card fraud. That’s when authorized users make false fraud claims after making legitimate purchases themselves.

These figures demonstrate how rampant credit card fraud has become nationwide in recent years. And Kalamazoo is certainly not immune.

Local Law Enforcement Fighting Back

Police are ramping up investigations and prosecutions around credit fraud rings in Kalamazoo:

• In 2010, three local men were arrested and charged with stealing a woman’s purse from a Meijer parking lot and using her credit card at multiple area businesses before being tracked down by police[3].
• In 2018, a task force busted a large identity theft ring here that was perpetrating mailbox thefts and using fake IDs to open fraudulent credit cards at various West Michigan retailers, racking up $400,000 in losses before finally getting caught[4] .
• And in 2020, four Kalamazoo women received lengthy federal prison sentences between 27-51 months for their involvement in an elaborate bank fraud and mail theft conspiracy[5].

So authorities are certainly taking notice and hitting back hard against these criminal groups wreaking havoc on citizens’ financial lives. But it remains an uphill battle given the surging rates of credit card fraud nationwide.

Protecting Yourself from Credit Card Fraud

The best defense is vigilance. Here are some tips to minimize your risk of falling victim to credit card fraud schemes:

• Check statements frequently for unfamiliar charges and report them immediately. Set up text/email alerts for large purchases.
• Use credit rather than debit cards whenever possible – they have much better fraud protections and you won’t be out real money while disputing fake charges.
• Never reply to suspicious emails asking for personal information – call the company directly instead. And don’t click links in messages.
• Only make online purchases through secure sites that encrypt your data. Look for the “https” and lock icon in the web address.
• Don’t use obvious passwords like “123456” or your birthdate. Change passwords frequently too.
• Use a mailbox with a lock or get a PO box. Also don’t leave mail sitting for long periods.

Staying vigilant to spot the warning signs of fraud quickly, contacting police about crimes committed against you, and having strong security practices are the best ways to avoid becoming yet another credit card fraud statistic.