ID Theft Risk Factor:
You use your credit card for Internet purchases
"I only shopped at secure Web sites. I thought my credit card information was completely safe. Yet theives stole my cards and used them to open other accounts in my name. What happened?"
Most consumers believe that their credit card information is safe because merchants tell them it is. Unfortunately, many identity theft victims were frequent online shoppers; they, too, thought they were shopping at secure Web sites and that their information was completely secure. Unfortunately, no merchant can offer 100% protection, and most victims learn that sad fact the hard way.
Here are some harsh realities to consider:
Myth |
Reality |
I only shop at retail Web sites that display a security logo and/or a written promise that my information is secure. That way, I can shop knowing that my information is protected. |
Even reputable brand name web sites ar not immune to hackers. Just look at announcement of the major security breach at the TJX Companies in early 2007, which put millions of customers at risk.
Risk: Your financial and personal information can be stolen from even the most sophisticated systems. |
All Web retailers will treat my personal and financial information with the highest degree of security. I have nothing to worry about. |
Most Web retailers will do their best to protect your financial information, but there are no guarantees. And, many may submit your personal information (e.g., name and Social Security number) to third parties for credit and background checks, identity verification or other data requests.
Risk: Skilled hackers know which third-party sources are less secure and prey on these sites to steal information. |
Caution with credit cards is important, but if I promptly notify my bank when my credit cards are stolen, they replace them over night and rarely even charge the $50 liability for each card. |
The limited financial liability is only a small part of the identity theft problem you may encounter if your credit cards are lost or stolen. Armed with your credit cards, thieves can open additional accounts and charge thousands in your name.
Risk: This will affect your credit rating until it’s all straightened out and place you at risk for denial of additional financing, new employment and even new insurance policies. Can you afford the risk ? |