Data Breach Battle: Be Part of the Fight!

Consumer Alert: Protect Your Credit Cards

College students are going to share a lot of personal information as they head back to campus. From the financial aid office to the cable company, there's a lot to be done, and for the identity thieves out there, the students are tempting targets.

It's been a rough year for many of America's largest retailers. We've seen a tidal wave of data breaches, where hackers have invaded a store's payment system and put millions of payment cards at risk.

Sadly, cyber-attacks are becoming a fact of life. "Fraudsters, and hackers, and criminals will never go away," said Odysseas Papadimitriou, CEO of CardHub.com, a website that compares and rates credit cards.

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"It's not so much a panic, but more of an annoyance to have to constantly check my bank account to make sure...no one is  taking any of my money," said Mike Swiantaniowski of Chesterfield.

Breaches Keep Coming

 The list of high-profile breaches just got a little longer this month, as Home Depot confirmed it has also become a victim. This security issue followed

similar cases at PF Changs, Neiman-Marcus, Michaels, and Target. So far, Target has been one of the largest breaches ever with 40 million payment cards potentially compromised. There is speculation the Home Depot breach could be even larger, but the retailer says its still investigating the scope of the intrusion.

Those companies are not alone and some experts on cyber security say the problem could be much worse than we know. A Southfield attorney recently told Ruth to the Rescue about a survey of American CEOs.

"Fifty-one percent of the CEOs said, 'Yes, we've had intrusions.' What that means is 49 percent of CEOs don't know they've had intrusions," said Michael Khoury of Jaffe Raitt Heuer & Wiess.

Consumers Protecting Themselves

"What can you do without stepping out of your routine and driving yourself crazy to prevent those things?" asked one woman who spoke with Ruth to the Rescue.

Most consumer experts agree it may be time for a new routine. While you may love the convenience of credit and debit cards, it's also time to accept the responsibility that comes with that service.

"I'm diligent. I'm watching. So, if something does pop up, I have the means to react," said Melanie Duquesnel, the CEO of the local Better Business Bureau.

She monitors her personal accounts closely and urges you to do the same. In the past, maybe you just checked your monthly statement, that's not really good enough anymore.

Other steps you can take:

* Set fraud alerts on your account so your bank or financial institution will contact you if there's suspicious activity.

* Change your passwords frequently and don't use the same passwords for financial accounts that you use for social media and email.

* Consider having a "dirty card". That's one credit card you use online or at stores. Just one card that's at risk if someone should hack a retailers system.

* Reconsider how you use your debit card. Remember if that card is compromised, thieves take YOUR money. You will likely get it back, but you could be bouncing checks in the meantime.

* Check your credit report at least once a year to make sure no one is establishing credit in your name.

Changes Are On The Horizon

New technologies could make help us keep our data more secure. Retailers like Target and Home Depot have stepped up their plans to go to a different type of credit card, the "Chips and PIN" format.

Already, used in Europe and Canada, the chip is encrypted to keep your information safe. Right now, most Americans use cards that swipe. That information can be stolen and replicated by anyone with a card reader.   

Also, there is technology that allows you to use your smartphone to pay for purchases. With the new iPhone 6 featuring Apple Wallet, that method of payment could also start gaining more acceptance.

Odysseas Papadimitriou, CEO of CardHub.com, says the breaches in the recent months could be the spark that leads to some security upgrades.

"Retailers now will be pushing credit card companies for the technology because they are, to a big extent, liable when these things happen," he said.

The bottom line: No matter how secure the technology may be, you should still be the last line of defense when it comes to protecting your personal accounts. You must monitor them, you must be aware of breaches, and you must be prepared to act if something happens.

If you rely on others to do all the work, you could end up losing money, wasting time undoing the damage, and wishing you'd taken some basic steps to protect yourself.

More tips are available from the Better Business Bureau.

 


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