I hardly ever use my UK cards here now, and will probably be just as wary anywhere else I go. I got shafted for about 2,500 GBP last year (eventually reimbursed by Visa though), following a holiday in Bali, where I had used the card. Like another poster on this forum, attempted usage of the card number came from Taiwan. I haven't heard about the main card swiping machines being altered before, but I have heard that waiters and others who will accept your card for payment, sometimes have small swiping devices on their person. They can swipe your card discreetly while carrying it to the cashier, the numbers being stored then downloaded to a computer when they get home. This was believed to be the major method working in Bali, until they caught some guy a while back who had been running the show for about 5 years. Haven't heard much on the outcome of that though.

Best answer is to get a local Visa or MC from one of the Indonesian banks. They tend to strictly limit your credit availability (unlike UK or US) - I think to about Rp 20 million. This means you won't get stung for as much if they do screw you, and the thieves also tend to target the foreign cards anyway (so I am told!!), with the likelihood of more funds being available there.

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I was stung recently - AUD$7,800+ card was fraudulently used here in Jakarta for an airline ticket to Korea, plus a truck load of jewelry in Melbourne and looks like a pretty big tank of fuel at a Shell gas station. This occurred around 2-3 weeks after a short trip to Bali where I know credit card fraud is rampant.

Prior to moving to Jakarta, I was managing a resort on another Indonesian Island and 
several of our guests also got stung. The banks and Visa were considerate enough to blame the business enterprise without consideration to the vulnerability of their product - those magnetic strips contain all the info needed.

The scam works as such - a small scanning device is available to discreetly swipe your 
card. Check what the waiter is carrying under the tray on on their belt - it is no bigger 
than a mobile phone. The other method is another chip is placed in the EDC (the thing at the register where they swipe your card) this then duplicates every card going through.

In the later, it is likely the enterprise is involved as they have had to let someone in to 
tamper with the machine. Make sure the shop, bar etc. only swipes your card once - no need for two swipes - especially if it is a small reading device. (I guess the registers at Hero & Sogo are safe??)

As a business, both the banks and Visa made outrageous threats, up to - canceling the right to offer Visa service (please tell me what business can survive today with out this) and a substantial US$ fine.

Not once did Visa acknowledge they are part of the problem. What has Visa done for its millions and millions of card holders to warn them of this problem? What steps have they taken to protect that little magnetic strip? Don't forget, those very high interest rates you are charged are paying for these fraudulent purchases!

I can fully understand the temptation of those involved - it is easy money. The responsibility should fall back on Visa and the Banks to protect their customers a little more.

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