Cyber-Thieves Strike Again: What To Do If You Are a Victim

September 17, 2014

Well, it’s happened again. Another national retailer has had its payment systems hacked. This and similar cyber attacks against corporations appear to be on the rise so as a consumer you will want to be especially diligent in watching your accounts for unauthorized use. The Consumer Financial Protection Bureau (CFPB) offers four steps you should take when you suspect that your debit or credit card information has been compromised:

1. Check your accounts for unauthorized charges or debits frequently.

If you have online access to your financial accounts, the CFPB recommends accessing those accounts regularly to check for suspicious activity. If you do not have online access then the CFPB recommends reviewing your paper statements as soon as they arrive.

2. Report a suspicious charge or debit immediately.

If you spot any suspicious activity, the CFPB suggests contacting your financial institution right away. If your card number has in fact fallen into the hands of an unauthorized person, you should cancel that card immediately.

3. Submit a complaint to the CFPB if you have an issue with your bank account or credit card.

The CFPB was established by Congress to protect consumers by making sure financial institutions abide by federal consumer financial laws. If you are having problems with your financial institution, the CFPB may be able to step in and bring a resolution to the issue. You can submit a complaint online or you can call (855) 411-CFPB (2372), TTY/TDD (855) 729-CFPB (2372).

4. Know when to ignore anyone contacting you to “verify” your account information by phone or email.

Another type of cyber attack is a scamming technique known as “phishing” whereby criminals attempt to bait you into providing account information over the phone or via email. You should know that a bank or credit union would never ask for account information over the phone or in an email when they initiate the contact. If you receive this type of contact, the CFPB recommends you call your card provider immediately to report it. Reliable sources of contact information for your card provider include the customer service number or web address listed on your bank or credit card statement or the back of your card. (For more information on phishing scams, check out the FTC’s consumer alerts.)

In addition to these four steps suggested by the CFPB, here are three more things you may want to do to protect yourself:

5. Change your passwords regularly.

I know. I know. You have too many passwords to remember already, but changing your passwords regularly (I suggest every 90 days) can reduce the chance of your online accounts being accessed by an unauthorized person. Also, avoid the temptation to write your passwords down, even at home.

6. Monitor your credit report.

Stealing passwords and account numbers is not the only way cyber criminals work. If an unscrupulous person gets access to a Social Security number or similar piece of personal data, they may attempt to steal your identity. According to the credit reporting agency TransUnion, ID theft is the fastest growing crime in America, and checking your credit report regularly is just one way to find out if you’ve become a victim. To learn about ways to reduce your chances of becoming a victim, check out this blog post by Erik Carter.

7. Close unused accounts

If you have any financial accounts that you do not use anymore, consider closing them. While closing old accounts may hurt your credit score, it probably won’t hurt as much as having an old account that you’ve forgotten about suddenly appear as active again because someone else has gotten a hold of it.

Advancements in technology are both a blessing and a curse, and while it’s hard to image life without the convenience of a debit or credit card, that might be the best way to minimize the probability of becoming a victim of a cyber attack. As for the rest of us, we’ll just have to be extra diligent when these things happen.