Steps to Take if Your Credit Card Data is Compromised

Credit and debit card data breaches happen more often, one might imagine. In 2020, the US alone reported 393207 credit card frauds, a 44.7% increase compared to the earlier year. It can be more if combined worldwide altogether.

Data breaches can be a painful experience for some users whose card was used for unauthorized purchases by attackers or if the amount is already stolen from their bank accounts. Data breach victims are left with the daunting task of determining what to do next and if they'll ever get their money back.

However, with a little precaution, the Impact of these security breaches can be reduced. It's important to know what to do in the event of a data breach to protect loved ones. Here's what to do if you or your family suffer a credit or debit card data breach, as well as prevention tips.

What is a Credit/Debit card data breach?

A credit or debit card data breach is when unauthorized individuals gain access to the personal information of credit or debit cardholders, such as their name, address, phone number, email address, card expiry date, PIN, and credit card number.

This can happen when a company's infrastructure is hacked, a retailer's point-of-sale system is compromised, or an individual's personal information is stolen in a data breach.

How does the breach happen?

Card data breaches can happen in several ways. One common way is when companies' infrastructure is hacked. This can include compromising a company's website, database servers, backup systems, etc. When these systems are compromised, cybercriminals can access customers' credit and debit card numbers.

Even though the organizations ensure strong security practices and strict compliance, missing any of the below can also result in a breach.

• Weak cryptography practices
• Weak access control mechanisms allow unauthorized persons to get access to internal data.
• Missing data retention policies and keeping sensitive personal data longer than needed
• Lack of security awareness culture
• Unpatched systems
• The weak screening process for third-party vendors or contractors, etc.

In addition, card data breaches can also occur when individuals' personal information is stolen. This can happen through the compromise of the user's own devices or through the installation of malicious applications.

What to do if your card data is compromised?

Verify the Source: Firstly, the source of the information from where you receive it is one of the most important things. If you receive a call from someone claiming to be from your credit card company and they ask for personal information, hang up and call the number on the back of your card. Legitimate credit card companies will never ask for personal information over the phone.

From Internet/News Portals: If you have received the information from the news portal, contact your bank, credit card company, or retailer immediately and confirm if any of your personal information and card details were compromised in the breach.

Notification from authorized Bank or Retailer: Have you been notified by a retailer or a banker about a card data breach? If yes, check with them about specifics, such as what data was accessed in the breach. For example, Card numbers, expiration date, Personal Information, etc.

Generally, banks and retailers are proactive and will be the first to notify you about your data compromise. Some retailers also offer a free credit monitoring service for some time.

In addition to the steps mentioned above, you can take the following detailed measures to prevent further damage.

How to take care of your credit or debit card?

• You can freeze up the card and ask for a new replacement card. This will prevent any further fraudulent charges from being made.
• Request a card services provider to place a fraud alert on your account.
• You can also request your bank to have your account frozen.
• Monitor your credit report and bank statements closely. Look out for fraudulent credit card purchases.
• File a police report. (If applicable, based on your province)
• Update passwords for all your affected accounts and ensure a unique one is used for all different accounts.
• Watch out for phishing emails. If the cybercriminals have missing pieces of your card information, they will send phishing emails and scam calls to get the remaining data from you.
• Make sure to contact a valid customer care number rather than one found in a spam email.
• Never give personal information to someone who initiates contact with you over the phone.
• Subscribe for transaction notifications, login alerts, etc. (if offered by the service provider).
• File a complaint with the legal body. (if applicable, based on your province)
• Do not share any OTPs with unknown callers.
• Do not click on any verification links that are not expected.

What do attackers do once they've stolen my card details?

Hm, you know what? It's a tough question to answer. I'll try to cover the most notable ones.

Cybercriminals can use the stolen data in several ways, depending on their needs and goals.

They could use the card data to make fraudulent purchases or to create fake cards that can be used for funding criminal activities.

They could also sell the information online to other criminals, who may use it to commit identity theft or other crimes.

The stolen data could also be used to steal money from the victim's bank account or to take out loans in their name.

In some cases, the cybercriminals may also attempt to blackmail the victim into paying them money in exchange for not releasing the stolen data to the public.

Conclusion:

I hope our steps in this article have helped you secure your finances for personal safety.

If you're still feeling anxious, speaking with someone specializing in credit card fraud might be a good idea. They can help answer any questions or concerns arising from being caught up in a breach of information security at one's bank or other organization where they maintain their account.

All points mentioned in this article are the author's views. Please check with your authorized financial institution or with your country's laws for more information.