The news has recently been abuzz with several well-publicized
incidents of theft of credit information from several processing
agencies. The most well-publicized was a a security hole at
CardSystems Solutions, Inc.. that allowed as many as 40 milliion
cardholders to have their account information compromised.
CardSystems, a processor of electronic payments, was a victim of
a virus introduced into their in-house computer network that
allowed distant hackers to access their network. This would be
enough to cause most owners of credit card accounts to panic,
but it gets even worse - CardSystems wasn't even supposed to
have that information in the first place. After clearing a
credit transaction, card processors are supposed to delete the
information.
CardSystems seems to have "inappropriately" held on to the
account information for what a company spokesman called
"research purposes." The only bright side to this theft is that
the thieves were able to obtain credit card numbers only, and
not the Social Security numbers that went along with them, which
might have made millions of cases of identity theft possible.
Still, this recent spate of thefts of vital financial
information of ordinary citizens raises a valid question - Is
there anything the average consumer can do to avoid being a
victim of someone else's poor security?
The relationships between the major credit card companies and
the companies that process their transactions have terms that
are usually dictated by the card companies. They are, by
trusting the processors with sensitive information, supposed to
keep an eye on the processors in order to make sure that the
information is handled appropriately.
These processes are not governed by Federal law, but the credit
card companies may fine the processors for protocol violations.
Little of the workings of these transactions are made public, so
what, if anything, can the average consumer do?
It would appear that there is little to be done. Years ago, such
transactions were handled by paper, but in today's world,
everything is done electronically. Unless every system in the
chain from point of sale to the mailing of the credit card bill
is completely secure, consumers are vulnerable.
With billions of dollars at stake, hackers have more incentive
than ever to find a way to obtain this information, and the
tools used become more sophisticated every day. For the time
being, consumers should be warned that their sensitive personal
information is vulnerable to theft.
In time, the credit card companies will undoubtedly come up with
more secure systems than the ones that are currently in use.
Until that happens, the average consumer has little choice but
to minimize their exposure to theft. The best way to do this is
to use credit cards as little as possible, and to cancel all
credit accounts except those that are absolutely necessary.
It is difficult to avoid using credit cards in our twenty-first
century world, but people often use them out of habit when cash
or a check would be adequate. Such alternatives are often
inconvenient, but at the moment, they represent the best option
for avoiding identity theft or other potential financial ruin.
About the author:
Talbert Williams offers debt consolidation referrals and
advice. For more information, articles, news, tools and valuable
resources on debt solutions, visit this site:
http://www.1debtfreedom.com
