Cases of credit card fraud rise in Superior area

MINERAL COUNTY — Grocery shoppers may want to stray away from using plastic this holiday season. 

Incidents of credit and debit card fraud have spiked throughout the northwest and investigators have potentially identified a wholesale grocery chain with roots in Spokane as the source. 

“This is a huge spike in this type of case,” Kootenai County Sheriff’s Office Lt. Stu Miller said. “It’s affecting residents all over the northwest.” 

The one common thread in theses fraud cases is URM - a wholesale grocery chain that services over 160 stores in the northwest, including Super 1 Foods, Trading Co., and Rosauers. Customers at these grocery stores, such as Wendell Wardell, have been the victims of what URM CEO Ray Sprinkle called a potential “criminal cyber attack against our payment processing system.” 

“We believe that the attack is targeting data found in the magnetic stripe on the back of credit and debit cards,” Sprinkle said. “This information is typically used to make counterfeit cards.” 

Reports of credit and debit card fraud have also spiked in Montana. In Superior, URM Co-op store Castle’s Market saw a large number of their customers come in to report fraud last week. 

“We’ve taken the names of these customers and are submitting them to an IT person at URM,” Ken Kuhl, owner of Castle’s Market, told The Press Friday. “We’ve been told they have a special IT task force that they’ve got working on this.”

Wardell describes himself as “cautious” when it comes to his personal banking information. Prior to taking any trips that would separate himself and his wife, Wardell calls the credit card company to notify their fraud prevention team of the families travels. 

“We do that so there is no question of where we are,” Wardell said. 

But while attempting to meet up with his family for Thanksgiving festivities in North Carolina, it was Wardell who was contacted by the fraud department at American Express. 

“Are you in Ohio,” the American Express representative asked on November 20. 

“No, still in Idaho, but please make a note I’m leaving this weekend to go to North Carolina until the 30th.” 

Wardell was then informed by the representative that there were three purchases being made on his card in Ohio while they were speaking. 

“Not me,” Wardell said. “Can you stop them?” 

“We just did,” the representative responded. “You’ll have a new Amex card by Friday with a new account number.” 

This was the first time Wardell has had his information used fraudulently. His last legitimate transaction was at Super 1 Foods in Hayden on November 18. 

“It’s a reminder that in spite of every care we take there are still people who know how to get around it and get the information,” Wardell told The Press on Monday. 

Sprinkle issued a press release Monday to inform the public of the ongoing investigation into the potential cyber attack. 

“Our investigation is ongoing, and we have found signs of an attack that is similar to those being reported by other grocery stores,” Sprinkle said. “We are working around the clock implementing enhanced security measures to block any further unauthorized access to our system.” 

In the meantime, Sprinkle suggested customers consider paying with cash or check at URM stores, adding that some stores may be able to process card payments through a dial-up connection that is not affected by the attack.  

“If you suspect that your credit or debit card may have been compromised, you should immediately contact the bank that issued the card,” Sprinkle said. “Major credit card companies have ‘zero liability’ policies that guarantee cardholders will not be responsible for fraudulent charges.” 

URM has created a call center with the sole purpose of fielding customer questions about the potential cyber attack. Sprinkle encouraged customers to call 1-877-237-7408 in order to learn more about what steps to take to protect their banking information.