Latest "Fraud Detection & Prevention" Posts
It’s no surprise that identity theft once again tops the “Dirty Dozen” tax scams put forth by the IRS for 2014. They warn that if an identity thief has access to your personal information, such as your name, Social Security number or other identifying information, he or she may use it to fraudulently file a tax return and claim a refund in your name. Think of the implications for the 110 million victims of the recent Target data breach as well as victims of the hundreds of other breaches at other retailers, universities, healthcare providers, government agencies and so on.
KrebsOnSecurity reports that the information from the Target breach alone has reportedly flooded underground black markets and cards are being sold from around $20 to more than $100 each. This data is being sold in hundreds of online “stores” advertised in cybercrime forums. A fraud analyst at a major bank was able to buy a portion of the bank’s accounts from such a store.
If you are one of the 40 million customers who have used a credit or debit card at Target stores in the United States between November 27 and December 15, you’d better start checking your accounts for fraudulent activity. Target confirmed that the data stored on the magnetic strip of cards (customer names, debit or credit card numbers, and card expiration dates) were taken, along with the three-digit security codes (CVVs) often imprinted on the backs of cards.
The type of data stolen would allow thieves to create counterfeit credit cards and, if pin numbers were intercepted, would also allow thieves to withdraw cash from ATM machines. Only in store purchases are at risk, so online shoppers need not worry.
Target spokeswoman Molly Snyder would not comment on how customers’ data were stored or encrypted prior to the attack, saying that would be part of the ongoing investigation. Target immediately notified law enforcement authorities and financial institutions, and the issue is being investigated by the Secret Service and a third-party forensics firm.
Holiday Security Tips: On the eighth day of Christmas, the experts gave to me, 8 scam detectors
Most of us are too busy to monitor every form of identity that is at risk. Unfortunately, victims usually get hit when they take their eye off the ball.
Solution: Purchase a comprehensive identity monitoring service
While a partridge in a pear tree may have been appreciated in 18th century England, it’s not a very coveted item these days! Instead, help out the ones you love (and yourself!) by giving the gift of identity theft monitoring.
Holiday Security Tips: On the seventh day of Christmas, the experts gave to me, 7 fraud alerts
George Bailey had his identity taken away to learn a valuable lesson. His guardian angel was able to reinstate it at the end of the movie, but if your identity is stolen, you may not be so lucky. Sometimes there is no possible way to prevent identity theft. The reality of living in the information economy is that your identity will occasionally be compromised. But don’t worry – if you catch fraud quickly, you won’t lose much.
Solution: Use Automated Account Alerts to Catch Fraud Quickly
Catch holiday identity theft quickly by actively monitoring your checking, debit and credit card accounts.
The key is to catch and resolve fraud within 30 days, before it becomes a headache.
As you head into the holiday season, one of the best steps you can take to protect your bank account is to eliminate the use of your debit card. While delivering a keynote speech in Washington DC last week, someone asked me if I could name ten times when you should NOT use a debit card. I replied, “It’s a trick question because the answer is NEVER!” I seriously do feel that way, but I know there are people who either need to or prefer to use a debit card rather than a credit card or cash, so I want you to be informed about how to use it wisely.