In light of the Target data breach last year—which affected me because I happened to have swiped my debit/credit card at my local Target on December 13th—I’ve been extra careful about shopping at the retailer. Luckily, I wasn’t defrauded; my bank simply sent me a new debit/credit card. Still, it was an unsettling experience, and it’s made me rethink how protected my data is—or isn’t.
Seeking answers, I talked with Bob Bunge, a cybercrime expert and professor in the College of Engineering and Information Sciences at DeVry University in Seattle about what we all can do to protect ourselves from cybercrime, whether we’re shopping online or in a physical store. As a basic premise, “assume every card you have is going to get compromised at some point,” Bunge says. Here are the three ways to reduce your fraud risk:
Swipe less often.Use cash for all purchases under $20, such as your morning lattes. By swiping less often, you’ll limit your exposure to potential fraud. When you do swipe, always use the credit option because your potential liability is generally less--$50 compared to $500 with your debit card. “I only use my debit card at my bank’s ATM,” Bunge says. Or, use a specific debit or debit/credit card for small purchases and purposely keep the balance low. Also, “make sure the card isn’t tied into your other bank accounts,” Bunge says.
Stalk your online bank statement.Although most banks have their own fraud departments and analytics to track your spending patterns, “checking your own statements regularly is a layer of fraud protection,” Bunge says. Just by paying attention, fraudulent activity is less apt to slip by you. Eyeballing your online bank statements daily isn’t too often.
Be crafty with security questions.Your answers to common security questions, such as “Where did you go to high school?” can be compiled about you, especially if the answer is out there on Facebook. “Be cautious about the information you put out on social media,” Bunge says. “Attackers are using it to target victims.” If you’re asked to answer security questions, when opening an account, for example, pick the most obscure ones. Another tactic: Don’t tell the truth. “Sometimes I just make stuff up and write it down so nobody would ever guess it,” he says.
The good news is that new credit card technology, called EMV (which stands for Europay, MasterCard, Visa, the three companies that developed the technology), eventually will replace the old magnetic stripe, reducing consumer fraud vulnerability in the U.S. EMV is popular in Europe and Asia, but the U.S. has been slow on the uptake. “We’re about a year away from seeing this improved technology, which will eliminate quite a bit of our current fraud risk,” Bunge says.
To read the full article written by Sandra Gordon, please visit ShopSmart.org.
