Area banks and residents are combating a credit card scam that seems to have originated in the North Chattanooga or Riverview area.
“It was very inconvenient because I don’t have a debit card now, and I’m missing almost $400,” Caroline Neal, 21, who is a Regions customer, said. “I’m going to France, and it makes me mad because that is money I have been saving to go abroad.”
Regions, Bank of America and First Tennessee customers have reported similar incidents.
NewsChannel 9 reported the story Tuesday after hearing from dozens of area consumers.
It isn’t cards or PIN numbers that seem to be stolen.
But someone from out of state seems to be stealing credit card information, possibly using a “skimmer” mechanism, after area residents use their cards in the North Shore and Riverview area, Keith Sanford, First Tennessee Bank president, said.
Credit card scams inconvenience consumers and cost banks money because they return the lost money to customers, Sanford said.
“We do end up bearing the loss,” he said. “Just in Chattanooga, there’s hundreds of thousands in loss.”
FBI spokeswoman Stacie Bohanan said she couldn’t confirm or deny the existence of investigations but said that victims can get information about fraud and identity theft from the Federal Trade Commission.
“Victims should contact their bank(s) that underwrite their card(s), place a fraud alert on their credit report, close compromised accounts, file a complaint with the FTC and/or file a police report,” she said in an email.
She also said that AnnualCreditReport.com is the only “authorized source” for free annual credit reports.
Neal said that her bank is sending her a new debit card and replacing the money, but that will take about 10 days.
She said she has used her debit card at the gas station on Hixson Pike near Las Margaritas and the Walgreens on Frazier Avenue.
Sanford said his bank works with customers to prevent fraud and monitor accounts for suspicious activity.
“We try to work with our customers proactively and reactively,” he said.
Updated @ 9:13 a.m. on 05/17/12 to change the name of the restaurant from Las Mas to Las Margaritas.