I had a $300 rewards card, I wsed it 4 times and put it away. 6 months later I went to check the balance only to find the card had been used out in California and my balance was $3 instead of $187. I contacted Incomm they said they would look into it two weeks later I got a letter saying my card present and swiped for the purchases made.
I went online to see what purchases were made and the last purchase that was made was the same day I was talking to an Incomm employee and faxing them paperwork all from NY yet the purchase was being made in California. I called back and asked to have them look into this further and was told it was easy for me to say I was in NY while making purchases in California.
I guess it's just as easy for them to said the card was swiped and present while still in wallet in NY.