HSBC Bank Sends Activated Debit Cards Through Mail

Knowzy writes "At least two divisions at HSBC Bank apparently failed card issuing 101 and are mailing out debit cards pre-activated. Because they are debit cards, fraudulent transactions come directly out of a victim's checking account. A similar report from 2004 suggests this issue is longstanding and widespread. When confronted with the evidence, HSBC would not commit to fixing this issue, preferring instead to offer vague statements like, 'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'"

Comments

In Other Words

[Low Ranked Craig]

'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'

Oh by the way look at this other shiny pretty stuff we've been doing to divert your attention from this major fuck up, which we kinda did on purpose to save on customer service costs when you idiots try to use your unactivated cards.

Not that they are perfect but I've been much happier with my credit union than any commercial bank I've used in the last 20 years...

Re:In Other Words

[Aladrin]

Actually, I read that differently.

Since they wouldn't commit to fighting this threat, and instead said they would work on their biggest threats...

WHAT THE HELL ARE THEIR BIGGEST THREATS!?

I'd be very, very scared of a bank that acknowledges that it has bigger threats than causing their customers to lose their money.

Re:In Other Words

[SkyDude]

I'm a merchant that accepts all major credit cards, and no, declines are not charged a fee. Only successful authorizations are charged.

Greatest threats...

[Darkness404]

'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'"

If you look at identity theft there are 3 "greatest" threats, stupidity on the part of the cardholder, stupidity on the part of the bank, or stupidity on the part of a third party. Even the best individual practices can't protect against stupidity from the bank or stupidity from a third party that has your card info for a legitimate reason.

For some reason banks seem to think that they aren't a threat to someone's security of their identity, they are a -huge- threat because they have all the information identity thieves need to make fraudulent purchases. Such things like this will undoubtedly have pressure put on the post office and mail handlers rather than the main culprit, the bank.

Re:Greatest threats...

[rm999]

This isn't really a identity risk issue. A stolen debit card alone is not enough to steal someone's identity (anymore than having his name is); a SSN or some other source of identity would be needed because a debit card alone is not a source of identity.

The real risk here is debit card fraud - sending active cards over the mail is practically asking for it. In the case of credit card fraud, the customer is barely inconvenienced because money is never taken out of his bank account. With debit cards, it's a lose your money first and prove you deserve it back later situation.

On the bright side, HSBC is ultimately liable for any losses due to fraud. If there is fraud due to the mailings, HSBC will lose a bunch of money and some idiot will probably be fired/reprimanded.

Greed

[betterunixthanunix]

Well, you know, if they are going to pay for adequate customer service, then the upper level management will not be paid as many millions of dollars per year as they are paid now. Think of the suffering of executives and shareholders before you start worrying about customers!

Re:tell em how you feel...

[nurb432]

Call them on your way out the door as you close your account.

Friends don't let friends get debit cards

[sirwired]

The lack of even the rudimentary security is precisely the reason I refuse to carry a debit card. Without your knowledge, your checking account is empty and your mortgage bouncing.

With a credit card, you get to argue with the bank about their money.

With a debit card, you get to argue with the bank about your money.

What happens when the bank denies your dispute? With credit cards, you get nastygrams. With debit cards, your mortgage starts bouncing. Again.

I'll take an ATM card any day of the week over a signature debit card.

SirWired

So HSBC has worse problems than this - uh oh

[RichMan]

I would worry a lot about the statement 'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'

That would seem to indicate they have much worse problems than the pre-authorized debit cards in the mail that must require a lot of resources and planning to take control of.

Definitely a bank to avoid as both a customer and investor.

Re:tell em how you feel...

[shutdown -p now]

You believe the government has a duty to protect you?

Why, yes, actually. Ever heard of "social contract"?

Re:tell em how you feel...

[Corbets]

You believe the government has a duty to protect you?

Why, yes, actually. Ever heard of "social contract"?

Yes. Usually from people advocating programs that are funded by money not belonging to them.

Re:tell em how you feel...

[Kitkoan]

Because things like mental illness, physical life-altering handicaps, racism and histories full of physical and mental abuse is just choices people make... not everyone who is 'down on their luck' chose to be. Sometimes its not as simple as declaring its their own fault and they get what they deserve.