Customers of local banks should keep a close eye on their account transactions, bank officials say, as a rise in debit and credit card fraud has been reported in recent weeks.
Officials at The First and Damariscotta Bank & Trust Co. said while there has not been a data breach at either bank, residents in the region have reported unusual activity on their debit and credit cards.
“Unfortunately, fraudulent activity is something that happens, and it’s happening quite a bit right now,” Scott Conant, president and CEO of Damariscotta Bank & Trust, said. “Debit and credit cards are a great thing in theory, but there are a lot of local, regional, and national players involved in making them work.”
Both The First and Damariscotta Bank & Trust posted updates on their Facebook pages Oct. 19 alerting customers about the increase in fraud activity.
The First President and CEO Tony McKim said the issue seems to be regional, as customers in Damariscotta and Calais have been reporting more fraudulent activity in the past two weeks. The First and Damariscotta Bank & Trust have fraud protection systems in place to alert the bank of any suspicious patterns in their customers’ accounts.
“Once we receive the alert, we can immediately block the card from being used and alert the customer,” McKim said.
McKim said the issue is not with the bank itself, however, the exact location of where the fraudulent activity is coming from is unknown at this time. Conant agreed.
“There are so many players at work, it’s hard to know where the leak is coming from,” Conant said. “Right now, all we can do is service our customers, follow the regulations, and take care of their money.”
Conant said without knowing what the source of the leak is, it is not possible to determine what sort of personal information is available beyond credit and debit card numbers.
Julie Kaplinger, owner of Metcalf’s Submarine Sandwiches in Damariscotta, was one of the victims of the fraudulent activity. Kaplinger, of South Bristol, said she first realized something was amiss when she checked her bank account Saturday, Oct. 10.
“At first I noticed there wasn’t as much money as I thought there would be,” Kaplinger said. “When I looked further I saw there was a charge of almost $500 to a Toys R Us in New York.”
Since the bank was closed on Monday for Columbus Day, Kaplinger had to wait until Tuesday, Oct. 13 to contact Damariscotta Bank & Trust to file a report about the charges. During that time, she noticed a few Facebook posts from friends reporting similar experiences.
The following Saturday, Kaplinger said she received a call from the fraud center for a different debit card for her business.
“I had just used my card on Friday at a local gas station,” Kaplinger said. “They asked if I had been traveling and I said no. My card had been used in Chicago.”
The company immediately placed a hold on Kaplinger’s card to prevent more fraudulent charges. Three hours later, another phone call came in, this time for Kaplinger’s husband.
“He had been keeping a close eye on his account, and I had just checked it before they called,” Kaplinger said.
Kaplinger said she has filed a report for the new fraudulent charges and hopes to get the money back soon.
“I just got the money back from the first claim,” Kaplinger said. “I really want to have it all straightened out because I balance my books at least twice a week.”
Of the accounts Kaplinger has her name on, she said it was only the accounts with debit cards that experienced fraudulent activity.
The Damariscotta Police Department is currently investigating a different case of credit card fraud after a resident was informed by her bank that her card had been presented in person at a store in New York.
“It wasn’t a case of her requesting a new card or losing her card,” said Officer Jim Dotson. “A duplicate copy of her card had been made. We don’t know how or even when the numbers were taken.”
Damariscotta Police Chief Ron Young said people who shop online should make sure the website being used is secure; otherwise, their information is at risk of being stolen.
McKim said The First will be reaching out to the U.S. Secret Service for assistance in investigating the matter. In a statement on the bank’s Facebook page, The First said the issue “appears to be a regional data breach involving a merchant and/or their card processor,” however, there is currently a lack of information to definitively name a merchant or processor.
McKim and Conant urged customers to be vigilant with their bank accounts.
“We all remember the breaches at Hannaford and Target in the past,” Conant said. “It’s never been easier to check your account with monthly statements, mobile banking, online banking, and even just by calling your bank. Keep an eye out for any suspicious activity and contact the bank as soon as there is something out of the ordinary.”
Lincoln County Sheriff’s Office Lt. Michael Murphy also urged residents to be proactive in protecting their information by recognizing potential scams.
“People will do anything to get your information,” Murphy said. “They will say they’re with your bank, your credit card service, or the lottery. They’ll contact you by email, phone, and even regular mail. Always call your institution to double check, and don’t just take someone’s word for it.”
