Editor’s Note:
The following stories have been shared by our readers over time. They are not intended to alarm you, but rather to raise awareness of what can happen. While these experiences may not be typical for everyone, they reflect real situations that some individuals have encountered. Awareness is your best protection.
Buyer Beware … Credit Card Fraud does happen in Indonesia!
Stories of Credit Card Fraud from readers of the site
Well, guess what – it happened to us too. We just received a letter from our bank in Australia (ANZ) saying that someone tried to use our card in Malaysia. It’s the second time in three months. We suspect it may have happened at Plaza Senayan, Café Roti on the 3rd floor, as we visited there around that time. So be careful. Now we only use cash when we visit Jakarta again. (11/2002)
Yesterday my ever-vigilant bank in the Isle of Man called me to inform me that both my credit card and my wife’s card had been cancelled due to fraud. Apparently, someone tried to charge a $3,000 nightclub bill in Taipei, Taiwan. I have never been there.
This is the fourth time this has happened in three years. Last year someone purchased a car in Seoul, Korea using my card. It took two months to recover the funds.
This time, I believe I know where the card was copied. I never let the card out of my sight, but I was distracted in a shop and the staff member briefly disappeared with it. When questioned, she gave an unconvincing explanation. When I returned the next day, she ran out the back. Visa has involved the police and expects a conviction. The shop was Alfa supermarket in Menteng.
I was just scammed this week – second time in three months, fourth time overall. With fewer expats around, this kind of theft seems to be increasing. If credit cards cannot be used safely, tourism and business travel could be impacted. How many people are comfortable carrying large amounts of cash?
I previously managed a resort where similar incidents occurred with our guests. In some cases, staff were responsible. There are two common methods:
- A small handheld device (about the size of a mobile phone) used to discreetly swipe the card
- Tampering with the EDC machine to capture card data during transactions
If a payment machine appears tampered with or unsealed, do not use it.
I was recently affected – AUD $7,800 was charged fraudulently for airline tickets, jewelry purchases, and fuel. This occurred a few weeks after a trip to Bali, where fraud has been reported frequently.
Magnetic stripes contain all the necessary data for duplication. Devices can be used discreetly by staff, or chips can be installed in payment machines. Businesses may not always be aware.
Banks and card providers often penalize merchants, but rarely acknowledge vulnerabilities in the system itself.
I now rarely use my UK-issued cards. I lost approximately £2,500 last year (eventually reimbursed). Fraudulent attempts originated from Taiwan after I had used my card in Bali.
It is believed that discreet handheld devices used by waitstaff have been a common method of data theft.
My bank once contacted me regarding a large purchase in Korea — a country I had never visited. It appears card data can be copied and sold to syndicates who create duplicate cards overseas.
Always monitor how your card is handled, or consider using cash.
We had a frustrating experience with ANZ Australia. Despite reporting fraudulent transactions, the bank failed to act promptly, allowing further unauthorized use. It took three months to resolve.
Since then, we have stopped using credit cards entirely.
There are multiple methods to copy a credit card:
- Magnetic stripe scanning devices
- Manual copying of card details
- ATM skimming devices
Never let your card out of sight. If necessary, accompany staff when processing payment.
Some users recommend using virtual card numbers for online purchases. These are single-use numbers with limited validity, reducing exposure to fraud.
Lowering credit limits and maintaining multiple low-limit cards can also reduce risk.
It is important to note that not all fraud originates at the point of sale. Possible causes include:
- Data interception through communication lines
- Algorithm-based card number generation
- Data breaches within financial institutions
- Visual memorization of card details
Avoid jumping to conclusions without clear evidence.
If You Lose Your Wallet
If your wallet is lost or stolen:
- Cancel all cards immediately
- File a police report
- Keep records of card numbers and bank contact details
Most importantly:
Contact credit reporting agencies to place a fraud alert on your name. This ensures any new credit applications require verification.
When traveling abroad, especially in locations where credit card fraud has historically been more common, having identity theft protection and proactive banking alerts can significantly reduce the impact of fraud.
