Is Your Credit Card Really Secure?
Making Safe Credit Card Purchases
We’ve all been told that shopping with a credit card is the safest way to make purchases. It makes sense; when you use a credit card, you do not provide any details of your bank account to the merchant, plus you are not liable for unauthorized transactions. Unfortunately, when you swipe your card, your card information can be stored by the merchant which can become a target by hackers.
Any time you swipe your credit card and wait while the transaction is being approved, sensitive data including your name and account number are sent from the store to your bank through computer networks, with each step a potential opening for hackers.
It is the responsibility of the credit card companies to design and implement the security rules that govern the industry.
The AP gives a dismal review of the rules; “The rules are cursory at best and all but meaningless at worst, according to the AP’s analysis of data breaches dating to 2005.” Unfortunately, even if you are lucky and your card is not hacked, the cost of the fraud ends up affecting all of the merchant’s, which is then passed on to the customer.
One of the largest hacks in history was back in 2007. Discount retailer T.J. Maxx and Marshalls fell victim to hackers when 45.7 million credit or debit cards were compromised. Experts say TJX’s disclosures in a regulatory filing revealed security holes that persist at many firms entrusted with consumer data: failure to promptly delete data on customer transactions, and to guard secrets about how such data is protected through encryption.
“It’s not clear when information was deleted, it’s not clear who had access to what, and it’s not clear whether the data kept in all these files was encrypted, so it’s very hard to know how big this was,” said Deepak Taneja, chief executive of Aveska, a Waltham, Mass.-based firm that advises companies on information security.
The only arrests believed to be tied to the case involved a gift card scam where 10 people are suspected of buying data from the TJX hackers to purchase Wal-Mart gift cards in northern Florida. The group, who aren’t believed to have committed the TJX hack, then used the cards to buy around $1 million worth of electronics and jewelry at Wal-Mart’s Sam’s Club stores, according to Gainesville, Fla., police.
It was later found that some of the data stolen dated as far back as December 2002.
Either way, it is still much more secure to use your credit card over your debit card it most circumstances. Even if you have to deal with the credit card companies and the credit bureaus for a few months, you can have everything corrected. In some extreme circumstances it may be beneficial to hire professional help in the case of credit card fraud or identity theft. In the case of such fraud, your credit can be completely ruined and will take time and patience to restore, so be vigilant in protecting yourself!
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So Credit Cards are still saver, pfff using mine now!
Im strictly debit, that sux!
I believe nothing is safe these days, always be aware!
So Credit Cards are still saver, pfff using mine now!
Im strictly debit, that sux!
I believe nothing is safe these days, always be aware!