Nice social engineering on their part.

I would bet that along highly embarrassed, the clerk is highly unemployed.

Inside job perhaps?

Wow. When I worked as a cashier/front end person at a supermarket, there were just stupid cashiers who would take an obvious counterfeit bill, allow customers to pass bad coupons, etc. There are stupid people on the planet, and they get jobs sometimes. There are smart people, who can pull off scams. Occasionally the two meet, and this is the outcome, a bouncing baby "face palm".

More like a fired cashier.

@Drew5764: Since they know the suspects names, it would be very easy to investigate weither they had a relation to the clerk. If so, I'm betting the clerk is on the hook for the amount until the others are brought to justice, and will more than likely roll for a better deal.

I once again fear for the human race. Every day I feel that the movie Idiocracy is closer to being the actual future of our race.
This is still funny as hell though.

So, it's stealing, but can they be brought up on charges if they're caught? I mean, the clerk let them have the merchandise.

Larceny?

I got fried from a retail job where someone had phisically altered the numbers on the card and had then scratched up the magnetic strip so it had to be entered manually.

When I worked retail, the system was kind of stupid-proof. When a card was declined, a box would appear on the screen informing us of the decline and telling us what number to call:

"Declined. Please call VISA merchant authorization number 1-800-555-5555"

Furthermore, we had the telephone authorization numbers for MC, Visa, AmEx, and Discover numbers all on a sheet of paper taped to the register. You know, in case the power went down and we had to do manual transactions.

There are many old credit card terminals out there. Some will/ some will not display the # to call. I'll bet the merchant expects a bank somewhere to reimburse the loss. BTW, in credit card fraud the merchant is left holding the (empty)bag.

@shorty63136: Yes, because the merchandise was obtained through fraud.

Yes, you'd be surprised how many old illegal credit card machines are out there. The ones that do not meet the current encryption or number privacy laws.
The merchant indeed is on the hook for chargebacks and in instances like this.

People in this town are just dumb enough to do that. Good ol' Hattiesburg.

load 'em all on the "B" Ship..

How does this work? So it declines the card but will let you override it by putting a authorization code in? And that authorization code isn't verified through the phone line or internet?

The only time I remember a authorization box to put a code in was when we swiped store credit cards. I never saw one for just a plain card, it would just decline and ask for a different way to pay.

@Ayanami: I've only seen one scene in that movie ("where's your tattoo, man?") but it made me laugh. And cry a little for the future.

@shorty63136: Hard to prove that she was part of the scam, not just being stupid.

Epic Fail

this was a big thing several years back and lost momentum as cashiers were informed about it. looks like it is back in play with a new crop of naive employees.

this is how it was explained to me in the credit card fraud training i got in 1998, the first time i heard about this scam:

it works with older terminals that don't display the cardholder name electronically

a credit card is stolen and the mag strip is left intact

the card itself is rubber banded super tightly between two plates of glass and put in boiling water. this flattens the card

a new set of numbers and name is manually punched into the front of the card, usually by hand by a talented individual who can work with letter shaped chisels [found in leatherworking stores]

if the card is reported stolen it sends up a flag that prompts the clerk to call.
there are certain three or four digit codes that will authorize it, depending on the card issuer- at disney we had a master override code that management would punch in if the card issuer couldn't be reached and the manager approved the risk factor.

so the trick is for the scammer to provide the cashier with a fake number to someone who will recognize the fake name on the card and give a master override code they got from whatever source.

this is one of the reasons that most cards today have part of the original number imprinted on the front as part of the flat text somewhere on the back. usually the last four digits. but a smart scammer just makes the card look like that has worn off through use.

most places i have worked keep a list of credit card authorization phone numbers near the register.

i would imagine that now, with those little hand held mag stripe readers/encoders, the crooks can just re-encode the strip to whatever number they stole from whomever they wish.

a guy tried this one on me at the front desk of a hotel in 2005 and kept trying to give me a number to call. i pretended to call that number but i had the mastercard phone number in front of me, out of his sight and called that one. and i gave the mastercard rep the phone number he gave me so they could track it down. the card was stolen, and we had an electronic scanner that showed me the name on the magstrip so i knew it didn't match the name on the imprint.

that particular man wasn't smart enough to use a fake ID though and they busted him as part of a ring.

tip offs to the cashier:

the last four/six digits of the card number are missing from the back of the card

the imprinted numbers and name are the same color as the card background

the card looks stressed and worn, usually with whitish striations around the new imprinted data on the front

if you have an electronic display, the names don't match

and of course, the customer gives you the number to call for authorization!!!

@joellevand: I thought all retail cashier employees received training in this to prevent fraud.

@catastrophegirl: Interesting that they gave you enough detail on how to do it then just how to look for it. Nice.

@ludwigk: I thought all retail cashier employees received training in this to prevent fraud.

Hahahaha!

Oh wait...were you serious?

@Ayanami: Too true. Especially the namechange for Fuddrucker's.

Wall-E also achieved somewhat of the same future, but to a different end and was rather serious and sad.

@catastrophegirl: Thanks for the little history lesson here.

I need to make a copy of this and give it to my bosses at work. It will be useful as we have more than a few cashiers at my job who would be susceptible to this.

@joellevand: Apple?

It's known that there aren't many smart people in Alabama. (cashier)

This is why clerks are paid minimum wage. They don't pay to think much. They are basically paid just to be there and ring up the bill.

@midwestkel: When a card payment doesn't go through for whatever reason (or if your machine is down) you call the real Visa/MC/Amex/Discover for authorisation. They give you a number, which you either enter into your CC machine (if it's working) or write on one of those old-timey card swipe sheets. This is good enough for the merchant to be paid for the transaction.

@catastrophegirl: Great information. Thanks for sharing.

I worked in retail for four years and we never got ANY fraud training. We were not even informed that fraud could occur, let alone how to spot it and prevent it. This was a nationwide chain of stores; I often wonder if they still do business this way?

Err, that's illegal.@KHAN!!!_GitEmSteveDave:

@karlsl: Or, this is why store owners - too cheap to pay a bit more for someone who's willing/able to use functioning gray matter while on the clock - point fingers everywhere else except towards themselves. "I can't find good help" is often synonymous with "I'm too cheap to pay for people I really need".

@catastrophegirl:

"the imprinted numbers and name are the same color as the card background"

This rule should not be considered hard and fast. The raised numbers and letters can have metallic foil added to make it look more authentic. The work a forger does by hand won't look new, but it also won't show as many striations.

Clerks should always phone a verification number supplied by their own store or found one in the white pages. This goes double for confirming the ID of a "repair person" or "inspector" you weren't told to expect. Never just call the phone number they supply on a business card!

@Trai_Dep: If three people are in on a fraud and they can only catch one, they'll try to make a deal with that one person to catch the other two. It's rare that someone doesn't take some kind of deal and accepts the full charge.

@albear:

AFAIK, this was in Mississippi.

You'd be surprised how often this happens. I worked in fraud for a large bank and we would occasionally run into situations where a perp would give the teller a number to call. It doesn't matter how many times you tell them not to use numbers provided by customers when verifying, someone is still bound to do it.

was she doing the transaction on a paper notebook?

virtually all businesses these days are on network connected POS systems that operate in real-time...meaning you call the CC company, they either approve or reject the request, and a subsequent verification is entered (this is also the same with personal checks and subsequent release codes)

I'd be reluctant to think that this was either a complete clusterphuck on the cashier's part, or more likely an inside job. $8k sale that doesn't involve at least a supervisor/manager (on top of an already declined CC) Please...

@KHAN!!!_GitEmSteveDave: stupidity could be a factor, or it could be that the cashier never received proper training in accepting payment. perhaps managers don't feel they need to spend the time b/c this stuff is common sense. it's not. cashiers are a retail business's front line for combating loss - empower them to know what to do in special situations & crap like this won't happen.

When I worked for a large big-box retailer, only management was allowed to call for an approval on a card. The register would lock, and require a supervisor key/code to enter the auth code from the bank..

It's fun having a notepad full of merchant ID's and numbers. yes, yes.

@The_IT_Crone: We had this system back in 1996 at Software Etc. That's 13 years ago--you'd think stuff like this would be ubiquitous by now.

I don't see how she could have kept her job after this. I worked retail for awhile and this is a pretty big mistake.

@RedmondDesomma: And it goes the other way- out here not all cards issued have metallic numbers. And of course, when you have a card bearing a foreign logo that links in to a US-based system but shows no obvious indication of such on the front or back (example- China's UnionPay system links in to Discover- swipe it in normal circumstances and it will go through as Discover, but any issues and you won't be finding any UnionPay authorization center to call).

@jamar0303: Would that type of foreign card fit the rule where the first digit tells you which card company issued it?

Amex - 3
Visa - 4
MC - 5
Discover - 6

Can you say inside job??

The cashier was in on it!

Once when living in California, my credit card number was stolen. And sold to people in Asia. Within 72 hours, almost 12000 of charges appeared. But not at Tiffany's Hong Kong, but at local places, like restaurants, etc.

The thieves have a deal with the restaurant, they submit fake multi thousand dollar meals, and if the charge is paid, the restaurant gets a cut. They know that less than 15% of the charges get paid, so they buy 100's, 1000's of CC #s. Submit 1000's of charges, and hope for 5% to get paid.

The thing is that you can't arrest a cashier for being stupid, and that is what they claim.

@Drew5764: @parkavery: Same here. Dig, if you will, a picture... The year is 2000 - Just finished my freshman year of college, looking for summer work, and took a job at the first place that would hire me - Kmart. Was ringing up someone, the card didn't go through. They called the number, handed me the phone - but before I could put through the purchase, something else happened - I forget what - and they left the store. I got a mild reprimand (basically, a 1 sentence admonishment) from the store manager. We were never trained on something like this (but, to be fair, I was a register-trained stock associate), not to mention lil' old DeannaFlying was 19 and working retail for the first time ever. Many different ways credit card fraud can happen...

@mac-phisto: I'm in charge of fraud prevention here at my company, I'm constantly going over things with the employees. If one of our guys accepted this I'd kill him/her and their manager. In front of everyone with an axe, people understand violence.

@WoodyXJS: Indeed. And I feel bad if, and only if, the employee was not given ample training in processing credit transactions. I can understand, too. Back when I worked in food service (Subway... Eat Shit!) I wasn't given much training on what to do when a card is declined. Being older and more mature, I would now know to call only the number listed on the card, AND ask for identification. No ID, no sale.

However, if this employee willfully disobeyed company policy and common sense, then I hope Hattiesburg Cycles garnishes the clerk's check for the damages.

@joellevand: Yup. I worked at Express & Bath & Body Works and we had the same set-up.

I was thinking this was like a mom & pop bike shop, assuming it was some naive college kid who made a serious mistake...never thought of it as "motorcycles"

Seriously, that's like a car dealership. The people there should be trained a little better than that.