Financial Protection

I have become quite interested in my finances over the last year or so. If you recall, we have previously been victims of debit card fraud. For Memorial Day, we have been planning a trip with some friends. We found a house to rent on the beach that would be perfect for what we were wanting. I went ahead and reserved the house online through the management company using my credit card to pay the deposit. I thought it was all ok.

I got an email the next day requesting me to call and confirm the reservation. When I called, the manager asked the usual questions, and we were just about finished when he asked the question that ruined the whole deal. He specifically asked for the card verification number on my credit card. This is the 3 or 4 digit number on the back of your card that is used to prevent fraud. The intention of the number is such that it ensures you have the card in your hand to use it. The number is transmitted only to the card company who verifies the code is valid. It is not stored, and in fact, is required not to be stored anywhere in any way so that if a database of card numbers is hacked, the verification code will not be stolen with them.

I was immediately unnerved by his request for this code that I had to tell him I would call him back on that. I gathered that his intention was to write it down, as he told me they were not allowed to store it electronically. That just oozed "secure" to me, and his assurances that the 300 lb man in their office would deter any would be thieves made me laugh. I also laughed when he told me they use this software that is the "second most secure software in the world, second only to the Pentagon, and even that has been hacked, so maybe its the most secure". There is no such thing as secure in public communications and the interwebs.

I had the feeling the guy did not really know much about his business, and only knew how to use the software that someone told him to use, so I called the software company to ask if they required the code for all transactions. The tech support, which is apparently one of two people that run the company (the most secure ever), assured me there were not such restrictions and that they could process a payment without it. When confronted with this information, the manger of the management company was shocked and had to call himself. When he came back on the line, he said he "learns something new everyday" and confirmed my reservation.

Today, I get a call again. This time he's not so friendly. He has decided that even though he can process the payment, there is a chance it will be denied without the code and he cannot accept my reservation. Even with a signed agreement to lease the house, which would give him the right to pursue the charges even if they were denied, was not enough because it might cause him more work. He was then quite rude to me and even called me paranoid.

I guess I am a bit paranoid, but I prefer to protect myself at all costs. What I can't figure out is how they have been in business for any length of time, requesting this information from people who willingly give it to them. It's analogous to giving your house key to a mechanic, or your ATM pin number to the clerk at the grocery store. Its unnecessary risk, and in my mind is stupid of both parties, those who ask for it and those who give it.

So we are back looking for another location to spend the holiday weekend. Hopefully, the next company we deal with is a bit smarter. Just like boxing referees always say, "Protect yourself at all times, and let's have a good, clean fight".