Given the exponential growth of e-commerce and online transactions, cybersecurity has never been more critical. Hackers may attempt to invade our privacy in several ways, but one area they find particularly enticing is credit card information. Stolen credit cards can negatively impact not just your finances, but your personal identity and privacy as well. Effectively protecting them and the data connected to them is essential in the online world.
In this article, we delve into how cybercriminals can steal your credit card information, highlight best practices that can keep you safe and explain what to do should your credit card become compromised.
6 common ways credit card information is stolen
Can a website steal your credit card info? The short answer is yes.
With phishing, hackers attempt to steal valuable information by impersonating a trusted source. Phishing schemes can come in several different forms, including phone calls, fake websites and sales emails.
For example, someone pretending to be from your issuing bank or credit card company calls and says they need to verify your credit card activity with some personal information and starts off by asking for your credit card number. Alternatively, a phishing email posing as a retailer offering you a discount or free items could be trying to trick you into giving up account details.
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How to prevent: The best way to prevent phishing scams -- whether via email, phone or text -- is to never give up any personal or credit card information unless you initiated the contact. Also, go directly to a retailer's website to conduct business to ensure you control all transactions.
2. Malware and spyware
Be careful what you download.
Accidentally downloading malware or spyware can enable hackers to access information stored on your computer, including credit card information and other details. Malware may include a keylogger that records your keystrokes or browser history and then sends that information to a hacker.
How to prevent: Avoid downloading attachments, unless they come from a trusted source, and be wary of the programs you download and install on any of your devices. Also, use antivirus software that catches malware before it infects your computer.
Credit card skimming is a popular offline method used by criminals to steal personal information, which can also lead to identity theft, at a point of sale.
- Card readers at ATMs, pumps at gas stations and other locations can be tampered with to add skimming devices. These phony readers collect and pass on payment information to thieves, who then clone the cards and use them as they see fit.
How to prevent: Inspect outdoor credit card readers for signs they may have been tampered with before using them.
- RFID skimming uses radio frequency identification technology to wirelessly intercept RFID chip-based credit, debit and ID information directly from cards or even from smartphones and tablets. They use near-field communication-enabled devices to record unencrypted data from the card or a device's RFID chip to steal card details, such as numbers, expiration dates and card holder names.
How to prevent: Make sure your financial institution has adequate safeguards in place, including encryption.
- Shoulder surfing is a form of skimming that doesn't involve specialized technology. A thief simply watches a user enter their code into an ATM or credit card information into a phone. This can be done nearby (over the shoulder) or far away, e.g., through binoculars.
How to prevent: Shield keypads with paperwork, body or by cupping your hand.
4. Data breaches
High-profile data breaches -- the ones we hear about -- have, unfortunately, become fairly common over the last few years. And with the amount of data stored online, it represents another avenue for hackers to steal credit card, financial and other kinds of personal information. According to Statista, the 1,473 data breaches in the U.S. in 2019 led to the exposure of nearly 165 million personal data records, a trend that showed no signs of slowing down in 2020.
How to prevent: One way to mitigate the possibility of becoming a victim of a data breach is to use a virtual credit card that enables you to check out at e-commerce stores without including your credit card information. If you become a victim, steps you should take include freezing your credit, placing a fraud alert on it and replacing the card affected by the breach. Also, obtain a copy of your credit report and be extra vigilant of suspicious credit card activity.
5. Public Wi-Fi networks
Unsecured public Wi-Fi networks carry some danger if you enter sensitive information when connected to them. While airport or hotel Wi-Fi can be convenient, precautions should be taken to protect against losing credit card and other sensitive information. Furthermore, should "Free Public Wi-Fi" show up on your device, it may actually be a hacker on a nearby smartphone or laptop attempting to get unsuspecting users to sign on so they can steal your personal information.
How to prevent: Don't conduct sensitive business while connected to public networks. If you need to access these networks, use a VPN. Otherwise, stick to trusted authenticated access points and Service Set Identifiers or use your wireless cellular data connection.
6. Your trash
While it may seem old-fashioned, criminals can dig through your garbage to find credit card statements, account information and more that they can use to their advantage.
How to prevent: Opt to receive credit card statements via email. If you do receive paper statements in any form, shred them after you've stopped using them.
Best practices to protect credit card data
Cybercriminals can choose from an assortment of methods to get your credit card. Here are some tips to prevent that from happening.
1. Monitor credit reports
Credit monitoring and identity security services such as LifeLock keep you up to date on your credit card activity. They can also help get you ahead of any fraudulent activity faster than if you were manually checking your statements.
2. Monitor bank accounts and review credit card statements for suspicious activity
Checking credit statements manually and monitoring Equifax, Experian or TransUnion for purchases you don't remember making can alert you to strange transactions and suspicious activity.
3. Set up alerts to notify you of any suspicious activity
Alerts from your bank via text, push notifications and/or email can help you identify suspicious transactions soon after they have happened.
4. Use antivirus software and VPNs
If you're connecting to any public networks, it's helpful to use a VPN to protect yourself from malware and hackers. Not to mention, antivirus software can protect you if you accidentally download harmful malware.
5. Check websites for a secure URL
When visiting any website, but especially when conducting online transactions, ensure the URL includes https:// and is secure.
6. Don't save credit card information on websites
It can be tempting to save your credit card information on Google or at e-commerce sites you frequent. However, you should consider avoiding this practice, as it potentially provides hackers with access to your personal information in the case of a data breach.
7. Use strong passwords and two-factor authentication
Another way to avoid being the victim after a data breach is to use strong passwords that contain a mix of letters, numbers and symbols. Two-factor authentication can provide an added layer of security to protect you. Consider using it when offered.
8. Don't write down your credit card information anywhere
Finally, avoid writing your credit card number, PIN, expiration data, etc., anywhere or posting pictures of your credit card number online.
What to do if your credit card information is stolen?
Following the best practices in this article will help keep your credit card information away from danger. Nothing is foolproof, however. So, you may need to take action if your information is stolen.
Here's what you should do.
1. Contact your credit card issuer
Calling your bank or credit card company is the first step you should take if you suspect your card has been stolen or compromised. This can prevent any further damage from occurring and help you avoid liability for fraudulent purchases. Your credit card issuer will cancel your card and issue a new one.
2. Update your passwords
Between data breaches, malware and public Wi-Fi networks, hackers can use several online methods to steal your credit card and personal information. Updating your passwords on any websites you regularly visit can prevent them from gaining access to this data.
3. Review and dispute credit reports
Even after you cancel your credit card, there may still be some transactions you're not aware of. Continue to monitor your credit statements so you can dispute suspicious transactions.
Credit cards are a common target for cybercriminals, and that's not going to change anytime soon. Being aware of the methods they use to steal personal information -- credit card data, in particular, but also other details that can lead to, among other things, identify theft -- is the first step toward protecting yourself.
Being aware of the methods they use to steal credit card data, in particular, but also other kinds of personal information that can lead to, among other things, identify theft, is the first step toward protecting yourself. Implement the best practices in this article to keep your credit information safe and take a more active role in preventing yourself from becoming a victim of fraud.