By Sarah Atkinson
Abuse of Signature Card and credit card policies may be opening the door to fraud on campus, and cashiers offer little defense against improper use of cards.
With vending machines accepting Signature Cards all over campus, students can swipe anyone''s card without permission and it is almost impossible to track, said Officer Eric Ahlborn of BYU Police crime prevention and investigation.
'It doesn''t take an Einstein to swipe another person''s card,' Ahlborn said.
Vending machines aren''t the only places where this type of identity fraud can happen on campus.
The Daily Universe sent two reporters Friday, Feb. 1, to stores and restaurants across campus to purchase items with another person''s credit card and Signature Card. In the case of the Signature Card, the user was a woman and the picture on the card was of a man.
In all seven cases where the reporter used another person''s Signature Card, she was able to purchase items under $20 without any hassle. Six out of seven times the cashier did not look at the front of the card.
In one case the cashier noticed the picture was different. Even in this case, the reporter convinced the cashier to let her use the card to purchase the item.
'There is no policy on Signature Cards,' said Summer Peters, an employee of the Twilight Zone. 'Sometimes we do, sometimes we don''t.'
The back of the Signature Card states, however, the use of the card is non-transferable and cannot be used by anyone other than the owner.
This difference between policy and procedure can be partially explained by the leeway given to cashiers by their employers, said Michael Nelson, director of the Signature Card office.
Despite the policy of non-transference, Nelson said someone can use another student''s card in 'legitimate' situations.
'Clerks are to make an informed decision and have that latitude,' Nelson said.
The cashiers in the BYU Bookstore follow these same unwritten guidelines.
'We have empowered our cashiers with authority with Signature Cards to go ahead and accept transactions involving the use of someone else''s card if they are under $20,' said Gene McMurtrey, head of accounting for the BYU Bookstore.
Roger Reynolds, director of the BYU Bookstore, said often spouses or children of students will come in with the student''s Signature Card, and the cashiers will allow them to use it. This also happens when faculty ask others to purchase items.
'Do you want us to slow down the lines to make a call back on every Signature Card?' Reynolds asked. 'Do you want us to slow down and cause an inconvenience to everyone there?'
Craig Schow, manager of the Signature Card office, said the low risk is not enough to jeopardize good service.
'If we raise the level of security, we slow the lines down. As long as our risks stay low, there''s no reason to increase the level of security,' he said.
Nelson said in any case, the cashiers are required to look at the Signature Card to verify who is using it.
'The policy of the university is that Signature Cards are non-transferable, but to accommodate customers, we bend the rules a little,' he said.
Reynolds said Signature Card fraud is not a major problem at the university, and the cases in the Bookstore where reporters used another person''s card were not representative.
'To purposely set up a cashier using deceptive behavior is not honest journalism,' Reynolds said.
However, in one case at Taco Bell in the Cougareat Food Court, the reporter watched five people in front of her use Signature Cards, and in none of the instances did the cashier even glance at the picture.
'There''s nothing we can really do,' said Amber Bessie, supervisor at Sugar and Spice. 'The problem is we tell (the cashiers to look at the picture), but it is difficult to have someone hang over their shoulder.'
The fraudulent use of Signature Cards is not the only identity fraud on campus. In the six instances Friday, Feb. 1, where a reporter used another person''s credit card in places like the Bookstore and Cougar Creations, none of the cashiers stopped him, even when he signed a signature clearly different from that on the back of the card.
Two of the BYU Bookstore employees said they always check signatures on the cards. One double checked the signature and still let the reporter purchase the item. When asked why she let the reporter buy the item, she said it was a one in 99 case.
In every case, however, the reporters were permitted to purchase the items.
'It appears we are going to have to do better,' said Max Behling, manager of Cougar Creations. 'It''s something on campus we need to look into.'
Reynolds said the use of credit cards by people other than the owner is in direct violation of Bookstore policy.
'I''m glad you did a test case on it,' he said. 'We will definitely have an attitude adjustment on this.'
As for the use of Signature Cards on campus, the system operates in a closed environment. This means once a student''s money is placed on the card, it belongs to the university, Schow said. This places the danger of liability on BYU, not the student. The holder of the card is protected and BYU is responsible.
'The merchant shoulders the responsibility for any transaction that is authorized,' he said. 'If they are not checking it, then the policy is being broken.'
Students who think their Signature Cards have been used improperly may file a report with the Signature Card office and receive a refund for that transaction, Nelson said.
'We''re very good at catching people who are using cards illegally. We have procedures in place where we can aggressively find people who are using other people''s cards,' Schow said.
BYU has been successful in prosecuting 87 percent of all reported cases involving Signature Card fraud, he said.
'We have a system we feel is very secure,' he said. 'We don''t want the students'' money at risk.'
Schow said that overall, Signature Card fraud on campus is not a big issue.
'We''ve been doing this for about 15 years, and there are less than 90 reported occurrences,' he said.
Ahlborn said he suggests students be more careful with their belongings. With students leaving their cards lying around, it is easy for someone else to use them.
'Keep them locked up. Don''t leave purses and belongings out,' he said. 'It''s common sense stuff.'
However, certain places on campus put students'' cards at risk by asking them to put their IDs in open-air holders where anyone can access them. If students don''t leave their cards, they risk having their activities interrupted by student officials asking to see their cards.
Alexander Jolley, facilities assistant at the Richards Building, said students are told to put their cards in an open holder, but it''s not a requirement.
'Putting the card in there holds their spot in the gym,' he said. 'If they don''t put their card where we can see it, we will almost definitely interrupt their game.'
One sign Tuesday outside the weight room read, 'Bring your BYU ID and place your ID, belt number, or place holder (from attendant) in the appropriate slot.'
At the bottom of the sheet, it read, 'We are not responsible for ID, bag or valuables.'
Americans lost $962.49 million in 1999 to credit and debit card fraud, according the Nilson Report, a bi-monthly newsletter on consumer payment systems.