In today’s world there are two kinds of credit cards: One is credit cards that have not been hacked “yet” and the other is credit cards that have “already” been hacked. Ask yourself “Which party do I fit into?” You assume you know the answer to this question. But do you really? Do you think that Home Depot knew the answer to that question just hours or minutes before they found out about their data breach? Do you think that the US Military knew they were getting hacked just after it started? What about Target?
Consider this. In October of 2014, FBI Director James Cook said, “China Has Hacked Every Big US Company,” http://www.businessinsider.com/fbi-director-china-has-hacked-every-big-us-company-2014-10. That means if I do business with my credit card, the likelihood of my card’s information remaining safe is virtually zero. Many people try to outsmart the thieves by using reloadable debit cards which may keep your information safe a little longer but in the end, odds are that your credit card is not safe. In January 2014 alone, these cyber terrorists stole 40 million credit cards from Target. 2.6 million credit cards were stolen from Michaels, and 9,000 was stolen from Neiman Marcus. By the time most thefts are realized, the compromised accounts reach into the millions.
There is a false sense that regulation and security auditing will help keep credit card information safe. Yet somehow companies continue to be compromised. In September 2014, 56 million credit cards were compromised from Home Depot and almost a million from Goodwill Industries Retail Division.
The bottom line is that my credit card information is not safe, and neither is yours.
Rest assured that at any moment, you can be a victim of credit card theft. In my next article I will go through some best practices that can possibly help reduce the risks associated with stolen credit card information. Until then, remain diligent by reviewing your statements and by keeping track of dates and places your credit cards are used.