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Edited on Sat Oct-15-05 10:30 PM by RoyGBiv
That works only to the extent that the employees responsible for completing transactions are willing to ask. Some companies have a policy of requiring ID for the use of a debit/credit card. Others don't. So basically it doesn't work at all because there's no consistency.
Strictly speaking, putting "See ID" where the signature belongs invalidates your card. That is, the card is not valid unless it has a signature on it. I have never encountered a merchant who wouldn't accept an unsigned card, however. If they do anything at all, they simply ask that you sign it before they accept it.
As for a story, someone apparently got my debit card number while I was traveling across the country. I had forgotten to bring a calling card with me and needed to make a phone call while on a layover in Atlanta. I pulled it out and typed the numbers into the phone to place a call. By the time my plane landed in Florida, my bank account was wiped out. Thankfully I was staying with a friend for several days and had time before I needed any cash. My bank reversed all the charges, all of which were for long distance calls to places in South America, and cancelled the card immediately, but it was a frustrating few days.
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