Summary
New Brunswick has recently been the site of frauds involving credit and debit cards. Many people have been informed of money being removed from their bank accounts, although it is not known how many people or how much money is involved. Earl Lyon was a victim who lost $200 and immediately reported his loss to his bank and the police. Once a bank is informed of a possible fraud, an investigation immediately begins. Lyon’s bank has agreed to reimburse the removed $200. The RCMP is currently warning people to monitor their bank account and to never give out credit or debit card information.
Connections
This article connects to the beginning portion of chapter 14.2, which is about credit cards. The book talks about the importance of credit cards in our society and how it can function with people using credit cards in place of cash. The benefits of using credit cards include making purchases on credit or deducting the ammount straight from the user’s bank account. The book however, never dicusses about the disadvantages of using credit cards. It would very easy for someone remove money from another person’s bank account if they were to obtain the credit card information of that person. The article states that the bank has agreed to compensate for the $200 loss, but banks may not be so generous in the future if money continues to get stolen.
Reflections
Although I am not an owner of a credit card, I find it unnerving how easily someone access someone else’s bank account with the right information. With that being said, I will have to be careful of how I handle my information once I obtain my credit card in the future. Even with the possibility of losing money, it is hard to ignore the benefits of these cards. Credit cards could very well replace bills and coins in the future.
http://www.cbc.ca/canada/new-brunswick/story/2010/03/02/nb-debit-credit-card-fraud.html
I agree with you that credit cards both have its advantages and disadvantages. Credit cards are more convenient and safe, since people do not have to carry large amounts of cash. People who purchase the merchandise on account will not have to pay until their statement arrives in the mail. However, if people do not pay before the deadline, interest will be charged on the total amount owed. Furthermore, thieves can very easily obtain someone’s credit card information, such as through dumpster diving or stealing people’s mail. Recently, credit card companies have inserted a chip within the credit cards, where customers need to enter their personal information number (PIN) when using their card. Although I am not a credit card user myself, I have seen my parents cover the card reader’s screen as they enter their PIN to block other people nearby from viewing. Even with the credit card number, thieves need the PIN, cardholder’s signature and some kind of photo ID before they can withdraw money from the account. Hopefully, this new security feature in credit cards will reduce the number of thefts in the future.
ReplyDelete- Jasmine Lee
I would have to agree with you regarding the benefits and the convenience credit cards can provide its users. However, I would never use a credit card for normal purchases such as shopping. Reason being, I might lose track of my spending unless I'm extremely organized and record each and every one of my purchases. Also, if I lost my wallet, I will only lose my cash, rather than my credit cards stolen and not knowing what the thief might do nor how much the thief will spend if they somehow figured out the access code.
ReplyDeleteJason Fang