Ways To Protect Against Credit Card Hacks
Pardon us for sounding all doom and gloom, but a series of incidents
proves that your sensitive financial and personal data isn’t necessary
safe. Look at some recent stats. A Home Depot data breach affected some
56 million credit and debit cards. The well-known
Target breach affected more than 40 million consumers, and if you want
to see the many other breaches – some even larger – in a depressing,
graphic format, take a look at this chart.
According to a 2012 Consumer Reports survey, 22.5 % of 5,000 consumers
who received notice of a security breach became victims of identity
fraud.
Read our Editors' guide on How to be safe and Protect your credit card from being hacked and stolen while Shopping Online HERE*
Why do cyber thieves take the time to wreck havoc in such large
proportions? Because it pays. On the black market, your credit card
information is worth an average of $32!
Data breaches are now part of life, and you need to know how to
protect yourself. Since hackers are going after the companies that hold
your information, it’s hard to stop them from getting your information.
All the same, you can take steps to minimize the damage. Even if you
haven't been hacked yet, many of these moves can make your information
less easy to find and less usable if you are caught up in a breach.
Read our Editors' guide on How to be safe and Protect your credit card from being hacked and stolen while Shopping Online HERE*
1. Get a Replacement Card
If you've been told you're in a data breach, don’t ask…tell
the company that you either get a new card or close the account. You’re
not likely to get any pushback from the already embarrassed company. If
you do, don’t back down.
2. Check Your Account Online
Don’t wait to check it when the statement arrives; check today. Keep
checking daily for at least 30 days after your new card arrives. If you
find a suspicious charge, dispute it immediately.
3. Freeze Your Credit
If you are caught up in a data breach, call each of the three main credit bureaus and request that
your credit report be frozen. Freezing doesn’t allow anybody to access
your credit report without your approval. Creditors probably won’t
approve an application without having access to the person’s credit
report.
If you're deeply worried about potential breaches, you can also
freeze your accounts; you don't have to be a fraud victim. However, this
step makes getting any kind of credit exceedingly cumbersome for you
and and the potential lender, so you may want to think twice about
taking it.
4. Order Your Credit Reports
You get one free credit report
per year by law, but you’ll probably be eligible for more frequent free
reports if you were a victim of fraud. Even if you haven't been
targeted yet, be proactive and get your free reports. Ideally, order one
every four months so you've covered the year.
5. Watch for Phishing Scams
Just because thieves have your credit card number doesn’t mean they
also have the expiration date and the three- or four-digit CVV number.
Beware of phishing,
a scam where the thief might send an e-mail or call in an attempt to
gain the rest of the information. Don’t give your information to anybody
unless you call them. If somebody leaves a message, go to the company’s
website and find a contact number to make sure it matches what the
person in the message provided. For even more security, call the company
directly and make sure the person who called you is legitimate.
6. Don’t Sign Up for High-Priced Fraud Protection
In the panic of the moment, you might be tempted to shell out up to
$300 per year for credit monitoring services. Don’t do it. By closely
reviewing the information you get free of charge, you can monitor your
own accounts. If a company provides the information to you free of
charge, make sure to cancel the service before the renewal date.
7. Be Smart About Passwords
You aren’t going to prevent a breach by employing all of the password
rules, but you don’t know what kind of information thieves were about
to steal. Employ strong passwords (those random letters and numbers) and
change your password frequently. Remember, if it’s easy for you to
remember, it's probably easy for a savvy cyber thief to crack.
The Bottom Line
If you haven't been a victim yet, act proactively to make yourself less vulnerable.
If you have, don’t panic. It’s going to take time to clear everything up, but you won’t pay for any charges that weren’t yours. Call your credit card company, tell it about any incorrect charges and be patient as it works to clear them from your account.
In the meantime, continue monitoring your credit report and credit card bills for more signs of unauthorized activity.
Read our Editors' guide on How to be safe and Protect your credit card from being hacked and stolen while Shopping Online HERE*
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