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Credit card fraud probed by authorities

by Keith Kinnaird News Editor
| November 15, 2013 6:00 AM

SANDPOINT — Take a close look at your credit card statements.

That’s the message Sandpoint Police are emphasizing after receiving two dozen reports of credit card fraud in the past couple of weeks.

It appears computer hackers have breached the database of a third-party company that processes credit card transactions for merchants and financial institutions, according to Chief Corey Coon.

Hackers either sold the stolen information or are using it themselves to ring up fraudulent charges in the East and Midwest. The charges are relatively small, which police suspect is designed to avoid detection.

“The biggest credit card charge was $200-$300. It’s not like they’re charging thousands of dollars. They’re doing these small charges and most consumers, I think, just miss them,” said Coon.

The credit card fraud reports that are being investigated involve customers of Horizon Credit Union, but Coon said it’s unclear if customers at other banks in the city are being affected because those institutions do not require a police report case number when fraud is reported.

“They handle them through their own security companies,” said Coon.

Police are working with Horizon and Visa to pinpoint the security breach.

Coon recommends that credit card holders pore over their account statements to make sure there are no fraudulent charges, retain receipts for purchases they do make and report any suspicious activity.

“It is my concern that local residents may not even know they have been defrauded,” he said.

Sandpoint Police have taken 73 fraud reports this year, 24 of which occurred in the last two weeks.

Ponderay Police Chief Mike Hutter and Bonner County Sheriff Daryl Wheeler said they’re also fielding reports of credit card fraud.

“They’re definitely the same scenario,” Hutter said of the reports his department is handling.

Wheeler said his office is handling “tons and tons” of fraud reports, mostly involving credit cards.

“We are also getting our share of bank frauds,” Wheeler added.