22 LINKED CHOCTAW HARRAH NOVEMBER 2014

Wait...Another Data Breach?TIPS FOR DEALING WITH CREDIT CARD FRAUD

What do Home Depot, Target, Jimmy John’s, Michaels, and Sally Beauty have in

common? All are retail stores with a presence in the Oklahoma City metro area that experienced a data breach compromising customer credit card numbers.

According to the Identity Theft Resource Center, 579 data breaches have occurred this year alone. We are seeing an increase in data breaches because “the United States is the last large country to adopt cards with computer chip technology,” says Karen Clay, Vice President of Risk Management at WEOKIE Credit Union, “making this country an easy target.” With each data breach, financial institutions incur a considerable expense to reissue cards that may fall into the hands of criminals. The impact on cardholders is

the inconvenience of getting a new card, the anxiety created by worrying about fraudulent charges, and the time it takes to update automatic payment such as utilities and gym memberships.

If you are like me and do not carry cash, everything is paid for with a debit or credit card. My wife and I budget, track our spending, and pay credit cards off each month, but we swipe a card each time we make a purchase. I personally have had four card reissues so far in 2014 – two VISA check cards from one financial institution (because of Target and The Home Depot), one VISA check card from another (due to the breach at Albertsons/Acme grocery stores from out-of-state) and a MasterCard credit card (also compromised by The Home Depot) – four cards fallen victim to data breaches. According to my credit union’s fraud department, the same VISA check card compromised by Albertsons/Acme

was also compromised by The Home Depot.

Does this mean we should stop using cards and only use cash? According to Elaine Dodd, Vice President of the Fraud Division at the Oklahoma Banker’s Association, “it is not necessary to stop using credit cards. There is a risk using only cash as well as criminals are producing pretty convincing counterfeit currency.” With all the data breaches, here is what cardholders should know and what they can do to protect themselves.• Financial institutions and credit card

companies actively monitor accounts for suspicious activity. If fraudulent activity is suspected, a cardholder will likely receive a phone call from the card issuer asking about certain charges.

• Credit card companies provide financial institutions with a list of compromised accounts each time

LINKED CHOCTAW HARRAH 23WWW.LINKEDOK.COM

Wait...Another Data Breach?TIPS FOR DEALING WITH CREDIT CARD FRAUD

a security breach occurs. When a cardholder’s credit or debit card is on a list of compromised accounts, he or she will receive a letter from the card issuer with a notification that a new card will be issued.

• As always, cardholders should monitor their accounts through online access and monthly statements. Dodd says “it is good to check your account online at least once a week. I check mine at least every other day.”

• Be on the lookout for small dollar transactions from places you haven’t been. “Do not ignore small purchases on your monthly statements, these could be test transactions” states Clay. Dodd adds, “Once criminals purchase credit card numbers on the black market, they want to make sure the card still works, so will run a transaction for $0.99 or $1.99, hoping you won’t notice before they try a larger dollar amount.”

• If a cardholder wants to dispute a charge, he or she has 60 days from the statement date to report the charge to the card issuer. Dodd says that

“cardholders should report suspected fraudulent activity immediately to their financial institution. Some financial institutions require a police report and since this is theft, your local law enforcement authority will take your report.”

• Once reported, the card issuer has 10 business days to investigate the disputed charge. If the charge is indeed fraudulent, the card issuer should refund the charge within that time frame. Clay notes the additional inconvenience to cardholders in the notification process and completion of forms for reimbursement.

• A new and more secure credit/debit card is in the works! Currently available in over 80 other countries, credit/debit cards with an embedded chip will make an appearance in the United States in

2015. “The computer chip embedded in the card creates a dynamic code that is unique to each transaction,” says Clay, “therefore, significantly reducing the risk of a counterfeit card being used at a merchant.” Dodd also expects a drop off in credit card fraud after the introduction of chip technology.

BY BRENT REMPE, DIRECTOR OF EDUCATION, WEOKIE CREDIT UNION. MORE INFORMATION ON CONSUMER NEWS IS AVAILABLE AT HTTP://MONEYMATTERS.WEOKIE.ORG/