What to Do When Hackers Get Your Credit Card Information
Credit card theft used to be limited to hands-on methods like wallet theft and purse snatching or observing credit card users to get their account numbers. Hackers now use computers to automate the process. Card holders must be extra vigilant to prevent their account numbers from being stolen, and they should know what to do if they are victimized despite their precautions.
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Methods
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Hackers steal credit card information in several different ways. They send phishing emails claiming to be from financial institutions and asking recipients to visit websites and enter sensitive information, the OnGuard Online government site warns. The linked websites look legitimate, but they gather credit card numbers for fraudulent use.
Some emails have attachments that download malicious software. It sends credit card numbers and other information to the hackers or lets them access the victim's computer directly. Criminals also send text messages claiming to be bank fraud notices and asking card holders to visit fake websites or call phone numbers that ask for personal information.
Effects
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Hackers use stolen credit cards to get cash advances and make purchases. Sometimes they get other information in addition to credit card numbers and use it to open accounts with the victim's identity. The victim cannot use existing cards once the credit limits are reached and may not even know about the new accounts until bills arrive or collection departments call for payments.
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Solution
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Report compromised credit cards to the issuer immediately so the account can be shut down. The Privacy Rights Clearinghouse recommends calling Equifax, Experian or TransUnion to add a credit report fraud alert. One credit reporting bureau will notify the other two, and lenders will go through extra-verification steps for new accounts for 90 days. The alert can be extended for seven years by submitting an extension request and police report. Monitor credit card statements closely for several months, and notify issuers immediately of fraudulent transactions.
Prevention
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Thwart hackers by installing and regularly updating anti-virus and anti-malware programs, OnGuard Online recommends. Ignore messages claiming to be from a financial institute and stating that immediate action is required. Do not follow links in such emails or download attachments. Ignore text message fraud alerts, or call the credit card company directly to check account status.
Detection
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Consumers cannot properly handle credit card theft if they do not know their information has been compromised. Problems may not show up for months if the hackers use the information for identity theft rather than immediate purchases. The Federal Trade Commission recommends continual credit report monitoring. The Fair Credit Reporting Act lets consumers get one free report each year from TransUnion, Equifax and Experian through the Annual Credit Report website (see Resources). Order a report from one bureau every four months to spread out the monitoring and increase the chances of catching problems early.
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