The statistics aren’t promising. The Identity Theft Resource Center (ITRC) reported a total of 1,091 breaches in 2016 alone – up 40% from the previous year. 2017 isn’t looking much better, with 975 cases reported already this year. Many of these are a retailer credit card breach or other merchant compromise. Here’s what you can do to protect yourself from data breaches that target outside merchants.
A data breach is the organized theft of sensitive information – often credit or debit card information. This information can be simply viewed by an unwelcome party, or stolen for a nefarious purpose. A data breach does not necessarily equate to fraud right away. If your card data was a part of a breach, your information could be compromised, but you probably won’t have any fraudulent activity on your card as long as you act quickly to replace the card.
The most common type of data breach, according to ITRC, are those that include hacking, skimming, or phishing tactics. They make up 55.5% of total breaches. The next most common is accidental email or internet exposure at only 9.2%. Merchants are often compromised through their own systems or 3rd party vendors. They simply don’t have the same protections in place as financial institutions.
One of the worst data breaches in the past few years happened to Target customers in late 2013. Up to 110 million people’s sensitive information was compromised. The breach was active for multiple weeks before discovered and ultimately led to the resignation of both the CIO and CEO in 2014. The hackers had gained access to the information through a 3rd party vendor of Target’s point-of-sale credit card machines.
If your financial institution notifies you that your data has been breached, they often will not be able to tell you the details of that breach. They may be notified by VISA or law enforcement, who will not provide the name of the merchant or the date the breach occurred. This is because they want to keep the sensitive information as protected as possible.
The most common response to a data breach is reissuing a new card with a new number. You will not have to pay for this card, but you will have to update any automatic payments you have on file with the new card number. It can be a hassle, but worth it to protect your overall accounts.
It’s scary to know how common it is for data to be stolen. However, there are ways you can protect yourself from a retailer credit card breach. Use these tips to make sure your data stays safe.
If a fraud alert is created, our card processor will text you asking if a purchase was legitimate. If you respond, “yes,” then the card remains open and you can continue shopping. If you respond “no,” then the card is blocked and a follow-up call is placed.
We encourage you to contact AmeriChoice directly for further instruction on card replacement. Although our card processor has this ability, we prefer to have personal contact with our members who experience fraud on their card. We know it can be a scary time, and our eServices department wants to take that time to reassure you and make sure you understand what happens next.
In most cases, the charge is stopped and never posts to your account. We then issue another card at no charge, and you’re back on track! If a fraudulent charge does post to your account, here’s what happens next.
Even as technology improves, merchants and retailers – large and small alike – will still be susceptible to hackers and data breaches. That’s why we and other financial institutions will continue to expand our security systems, advocate for updated protections across all industries, and educate members on how to stay safe.
The best way you can avoid fraud through merchant security breaches is to monitor your account for any suspicious activity. You can do this for your AmeriChoice accounts 24/7 through our free mobile banking app. Learn more about the app now. Get the AmeriChoice mobile banking app.