Do you remember these headlines?
40 Million Target® Customers Affected by Data Breach1
Michaels® Breach Exposed Nearly 3 Million Cards2
Home Depot® Breach Hit 56 Million Credit and Debit Cards3
Staples® Hack Exposes 1.2 Million Credit Cards4
It seems that we have become more vulnerable
than ever to hackers able to steal millions of debit and credit card numbers
and other information quite easily. In
fact, a Homeland Security advisory issued on August 22, 2014 estimated that
over 1,000 businesses have been affected by cyber attacks similar to the one
that hit Target in 2013.5
27% of Americans say they or another household
member have had information from a credit card stolen by hackers. Fortunately, there are ways to protect
yourself from joining that number.
What
can you do to protect yourself?
I have put together several suggestions you
can implement that will dramatically reduce the risk of a bankcard breach
affecting you. Of course, it’s
impossible to protect yourself against every scenario; however, you can reduce the risk of being affected by
taking several precautions.
1.
Choose a different way to pay. – Many merchants
accept alternative ways to pay for goods and services, including Google®
Wallet, Apple Pay®, or PayPal®. These services provide an extra layer of
protection because they keep your credit card information stored but do not
actually provide it to retailers when you pay.
“Any technology that avoids you having your credit card in your hand in
a store is safer,” states Craig Young, a security researcher for Tripwire®.
2.
Don’t use your bank cards online unless the site is secure and
reputable. – Make sure you are purchasing from a
reputable company and website. Don’t
trust a site just because it claims to be secure. Use credit cards so you can dispute the
charges if something goes wrong. You can
still be reimbursed for fraud on a debit card but the process often takes
longer and your money is already gone.
3.
Avoid being skimmed. – Skimming occurs when thieves place an
electronic device on an ATM or other card reader to gather bank card
information. The specific device used is
often a realistic-looking card reader placed over the factory-installed card
reader. To avoid being skimmed you
should examine the card reader for suspicious, loose or damaged equipment,
avoid using your PIN number at the gas station (see #4 below), and use ATMs at
an inside location.
4.
Protect your PIN number. – Your PIN is tied to your debit card. When using your debit card simply ask the
cashier to run the transaction as a credit or select credit on the PIN
pad. If you don’t enter your PIN it
reduces the chances that a hacker can steal that information as well.
5.
Delete your saved payment methods from online shopping sites. –
You will have to reenter your billing information each time you make a
purchase, but it will protect your payment information if your account is
breached or someone gains access to your login.
6.
Review statements and credit reports regularly. –
Look for unauthorized charges or small amounts appearing on statements. Check your credit report regularly. Federal law allows you to get a free credit
report every 12 months to review. Make
sure all information is correct.
In 2015, there is a major change in card
technology coming to the U.S. that has been used in Europe for years. This is the shift to EMV chip
technology. EMV, which stands for
“Europay, MasterCard®, and Visa®,” is a global standard
for credit cards equipped with computer chips and the related technology used
to accept and authenticate chip-card transactions. EMV technology will not stop hackers, but it will make the information they steal more
difficult to use.
Although the implementation date for EMV card
technology is October 20156 there may be many merchants that will
not comply by that date. It’s a surety
that we will need to continue doing all we can to protect our personal
information and finances. The ongoing
battle between the good guys and the bad guys will continue.
This information is designed to help protect
the good guys. I encourage you to
protect yourself and your money by implementing the suggestions above. However, as always, if you have any questions
please feel free to give me a call.
Sources:
1 Kelly Clay, “40 Million
Target Customers Affected By Data Breach,” Forbes.com, December 18, 2013
2 Bill Hardekopf, “Michaels
Breach Exposed Nearly 3 Million Cards,” LowCards.com, April 18, 2014
3 Bill Hardekopf, “Home Depot
Breach Hit 56 Million Credit and Debit Cards,” LowCards.com, September 19, 2014
4 Jose Pagliery, “Staples Hack
Exposes 1.2 Million Credit Cards,” CNN.com, December 20, 2014
5 Alert (TA14-212A), “Backoff Point-of-Sale Malware,” us-cert.gov, July
31, 2014, revised August 27, 2014
6 Jeff Carelli, “Will Retailers be Ready for EMV by Oct 2015?,”
paymentsleader.com, October 16, 2014
Joseph Pisani, “5 ways to protect yourself
from data breaches,” USAToday.com, September 21, 2014
Kim Zetter, “How to Protect Yourself From Big
Bank-Card Hacks,” Wired.com, September 10, 2014
