Dozens in Cedar Rapids report fraudulent bank transactions

CEDAR RAPIDS – Local financial institutions are asking customers to closely monitor their accounts after a card skimmer was apparently installed in the Cedar Rapids area.

Rick Benhart, president and CEO of Collins Community Credit Union, said about 50 customers have reported fraudulent transactions in the last few days, and his understanding is that many area financial institutions have had similar reports.

Benhart said many of the fraudulent purchases have been made in North Carolina and California.

“This stuff, unfortunately, even in Eastern Iowa, raises its ugly head,” Benhart said.

Authorities believe a card skimmer – a device attached to an ATM, gas pump or other point of sale that collects bank card information – was recently operating somewhere in the Cedar Rapids area, according to Benhart. He said it does not appear the skimmer is still collecting data.

Collins Community Credit Union customers have had their money refunded through the fraud department, and were issued new instant debit cards.

“The consumer really gets protected, because the financials step up and take a loss on it,” Benhart said.

Benhart declined to quantify the total amount all the reported fraudulent transactions, but said, “we're not talking about a lot of money here.”

Last September, a card skimmer was located on an ATM at a U.S. Bank in Marion. Police investigated but did not determine who was responsible.

Marion police Lt. Scott Elam said reports of fraudulent bank transactions have gone up significantly in recent years, as use of credit and debit cards has become more popular. Skimmers have been seized around the country, but bank card numbers can also be stolen when records from businesses are hacked.

In addition to legitimate thefts, Elam said the automated system can lead to errors when there is a mechanical glitch that isn't caught.

“The big thing is people just need to keep track of their accounts,” Elam said. “If they see a charge they didn't make, they need to contact their bank immediately.”