1. 22 LINKED CHOCTAW HARRAH NOVEMBER 2014
Wait...Another Data Breach?
TIPS FOR DEALING WITH CREDIT CARD FRAUD
W
hat do Home Depot,
Target, Jimmy John’s,
Michaels, and Sally
Beauty have in
common? All are retail stores with a
presence in the Oklahoma City metro
area that experienced a data breach
compromising customer credit card
numbers.
According to the Identity Theft
Resource Center, 579 data breaches
have occurred this year alone. We are
seeing an increase in data breaches
because “the United States is the last large
country to adopt cards with computer
chip technology,” says Karen Clay,
Vice President of Risk Management
at WEOKIE Credit Union, “making
this country an easy target.” With
each data breach, financial institutions
incur a considerable expense to reissue
cards that may fall into the hands of
criminals. The impact on cardholders is
the inconvenience of getting a new card,
the anxiety created by worrying about
fraudulent charges, and the time it takes
to update automatic payment such as
utilities and gym memberships.
If you are like me and do not carry
cash, everything is paid for with a debit
or credit card. My wife and I budget,
track our spending, and pay credit cards
off each month, but we swipe a card each
time we make a purchase. I personally
have had four card reissues so far in
2014 – two VISA check cards from one
financial institution (because of Target
and The Home Depot), one VISA check
card from another (due to the breach at
Albertsons/Acme grocery stores from
out-of-state) and a MasterCard credit
card (also compromised by The Home
Depot) – four cards fallen victim to data
breaches. According to my credit union’s
fraud department, the same VISA check
card compromised by Albertsons/Acme
was also compromised by The Home
Depot.
Does this mean we should stop using
cards and only use cash? According
to Elaine Dodd, Vice President of the
Fraud Division at the Oklahoma Banker’s
Association, “it is not necessary to
stop using credit cards. There is a risk
using only cash as well as criminals are
producing pretty convincing counterfeit
currency.” With all the data breaches,
here is what cardholders should know and
what they can do to protect themselves.
• Financial institutions and credit card
companies actively monitor accounts
for suspicious activity. If fraudulent
activity is suspected, a cardholder
will likely receive a phone call from
the card issuer asking about certain
charges.
• Credit card companies provide
financial institutions with a list of
compromised accounts each time

2. LINKED CHOCTAW HARRAH 23WWW.LINKEDOK.COM
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a security breach occurs. When a
cardholder’s credit or debit card is on
a list of compromised accounts, he or
she will receive a letter from the card
issuer with a notification that a new
card will be issued.
• As always, cardholders should
monitor their accounts through
online access and monthly
statements. Dodd says “it is good to
check your account online at least
once a week. I check mine at least
every other day.”
• Be on the lookout for small dollar
transactions from places you haven’t
been. “Do not ignore small purchases
on your monthly statements, these
could be test transactions” states
Clay. Dodd adds, “Once criminals
purchase credit card numbers on
the black market, they want to make
sure the card still works, so will run a
transaction for $0.99 or $1.99, hoping
you won’t notice before they try a
larger dollar amount.”
• If a cardholder wants to dispute a
charge, he or she has 60 days from the
statement date to report the charge
to the card issuer. Dodd says that
“cardholders should report suspected
fraudulent activity immediately to
their financial institution. Some
financial institutions require a police
report and since this is theft, your
local law enforcement authority will
take your report.”
• Once reported, the card issuer has
10 business days to investigate the
disputed charge. If the charge is
indeed fraudulent, the card issuer
should refund the charge within that
time frame. Clay notes the additional
inconvenience to
cardholders in the
notification process
and completion
of forms for
reimbursement.
• A new and more
secure credit/debit
card is in the works!
Currently available
in over 80 other
countries, credit/
debit cards with an
embedded chip will
make an appearance
in the United States in
2015. “The computer chip embedded
in the card creates a dynamic code
that is unique to each transaction,”
says Clay, “therefore, significantly
reducing the risk of a counterfeit card
being used at a merchant.” Dodd
also expects a drop off in credit card
fraud after the introduction of chip
technology.
BY BRENT REMPE, DIRECTOR OF EDUCATION,
WEOKIE CREDIT UNION. MORE INFORMATION
ON CONSUMER NEWS IS AVAILABLE AT HTTP://
MONEYMATTERS.WEOKIE.ORG/