Credit Cards Compromised

[imoldernu]

The hacking of Target's records apparently puts cardholders of any credit card used between black Friday and December at risk. Apparently the hacking came from abroad, probably China so apprehension of the criminals is unlikely. Acording to tonight's news, people are finding charges on their cards from online or places far from their homes.

One of the news broadcasts noted that there have been many security breaches in the past from places like TJ Maxx and some banks. The Hackers sell the listings which are complete with Name, Number, and security code... all that is included in the magnetic strip on the card. The persons who buy the data, can easily create copycat cards with the stolen information...

Some questions....
If it happened to Target, why not Sears or Walmart or Home Depot etc...
Since it's not only the proprietary cards, it looks like any credit card can be involved.
Who is responsible for the losses? Are individual losses limited to the $50?
What happens stolen cards become viral?
Can you and I do anything to prevent being compromised? Stopping your account? Asking for a new card?

Not sure, but I think the news said somthing about using debit cards as credit cards, to avoid problems... Not sure about that.. More info?

Previous security breaches seem to have been brushed over, with no serious repercussions, but the Target problem seems to have gotten more concern. It surely isn't going to help their sales during the most important sales week of the year.

Open for additions, corrections and more information...

Chicago Tribune article:
http://www.chicagotribune.com/news/sns-rt-us-target-breach-20131218,0,6530743,full.story

 

[Midpack]

Your Liability for Unauthorized Credit and Debit Card Charges | Nolo.com

http://www.cbsnews.com/news/what-to-do-next-if-youre-a-target-card-theft-victim/

 

[imoldernu]

From Midpack's link... on debit cards...

"The good news is, from what Target has said, what was stolen was card data and not personally identifying information," Herron notes. "Unless they get your Social Security number and address, it's really hard for whoever is behind the breach to apply for credit in your name."

Nevertheless, one question that remains is how the breach will affect people who used their debit cards at Target. While the retailer hasn't said the breach affected PIN numbers, consumers should be aware that debit cards don't have the same type of protections as credit cards, Herron notes.

"If your debit card is stolen, your losses can be unlimited, depending on what's in the bank and when you report fraudulent charges," she notes. "If you have to shop with the money you have, then I would pull cash out" of the bank for purchases, rather than relying on a debit card.

That's pretty scary...

 

[daylatedollarshort]

We have had a number of unauthorized charges on various credit cards these past few years. In all but one case, when we had a brand new card, the card company fraud department caught the charges before we did. I think that was because we hadn't established any normal shopping patterns yet for them. Now they know we aren't buying prepaid phone cards in Mexico.

One of our kids had a fraudulent debit card transaction and the credit union took care of it and sent a new card.

We hadn't been to Target in months but went within the hacking time frame and used a credit card. So far we have not had fraudulent charges, but we are going to keep checking.

 

[Chuckanut]

I would not recommend use of debit cards to avoid the problem. Debit cards make the problem worse for the consumer since debit cards do not have the same legal protections against fraudulent use that credit cards have. The banks lobbied long and hard to make sure that debit cards were not covered like credit cards. Let the consumer beware.

If I used a debit card on any regular basis, I would have it linked to an account that had only a minimum of money in it at any time, so they could not drain a large account.

 

[Helen]

I rarely go to Target but did during this time period and used my credit cad to buy a $5 string of Christmas tree lights... I am watching my card and so far there have been no fraudulent charges.

 

[rbmrtn]

Interesting attack in that they say it involved skimming the data from card readers but 1700 stores were hit. Skimming usually involve tampering with the hardware to put in a fake scanner to take the info, that's a lot of scanners to modify all at the same time. Maybe some inside involvement, intercepting the network data between the scanner and the processing system. They said online transactions were not hit.

For CC you are only liable for the first $50 , when you report the lost/theft. For debit cards you are responsible for all of it ( unless the bank has allowed other limits ).

 

[Sue J]

I shopped at Target on December 5th. I paid with CASH. Anonymous and safe.

 

[Bestwifeever]

We shop at Target a lot (it is closer than Walmart) with a debit or credit card but amazingly were there two days before and two days after the problem dates. Whoa.

I wonder if the chipped cards would have all that information embedded within them, the security code, etc.

 

[easysurfer]

I'd glad there is no Target near me that I go to.

 

[Alan]

I wonder if the chipped cards would have all that information embedded within them, the security code, etc.

Not sure if a piece of software in the stores computers can intercept card details like the swipe variety, but from what I understand the PIN and CHIP are not copyable.

A CHIP and PIN card is just as susceptible to not-in-person purchases as regular cards once someone has the number, expiration date and CVC which are all printed on the card.

 

[Marita40]

I used a Target red card (debit) during this time. I just changed my PIN at their website as was advised. I will monitor the account closely.

The red card gives a 5% discount on all purchases, so it is worth it to me. I don't keep much money in the checking account it draws on.

 

[audreyh1]

I got my IPad trade-in credit from Target, but hadn't yet bought the new IPad mini because the new Retina Display ones aren't available in stores yet and very limited availability on line. Wow - glad they hadn't swiped my credit card yet! <-- Ooooo pun! "swiped" - LOL!

Merchants/issuers need to get their security act together! Maybe this will wake them up!

 

[Midpack]

We only have a debit card because our bank issued them in lieu of ATM cards, presumably common? We never use it otherwise (why not take advantage of the float), now I'm glad we don't. I didn't realize how different the liability could be. Yipes...

 

[MichaelB]

Merchants/issuers need to get their security act together! Maybe this will wake them up!

Exactly.

 

[audreyh1]

We only have a debit card because our bank issued them in lieu of ATM cards, presumably common? We never use it otherwise (why not take advantage of the float), now I'm glad we don't. I didn't realize how different the liability could be. Yipes...

Years ago when we were issued debit cards automatically, we made the bank take them back and reissue us old style ATM only cards. Didn't like the direct debit feature on our account!! And the credit cards offered so much more protection, not to mention the float, and now the nice cash reward features.

With the new PenFed checking, I am accept ending the VISA check card but I plan to leave that account limited in deposits and only use the card if needed while traveling - funding the account for that purpose at the time of travel. Not sure if it will turn out to be that useful anyway - we'll see.

 

[Midpack]

Years ago when we were issued debit cards automatically, we made the bank take them back and reissue us old style ATM only cards. Didn't like the direct debit feature on our account!! And the credit cards offered so much more protection, not to mention the float, and now the nice cash reward features.

With the new PenFed checking, I am accept ending the VISA check card but I plan to leave that account limited in deposits and only use the card if needed while traveling - funding the account for that purpose at the time of travel. Not sure if it will turn out to be that useful anyway - we'll see.

I wonder if we could still have an ATM only card? I never asked. Good thought.

Though we keep very little in checking anyway, so the liability for us is very limited.

 

[audreyh1]

I wonder if we could still have an ATM only card? I never asked. Good thought.

Though we keep very little in checking anyway, so the liability for us is very limited.

At BofA you can. My old ATM card had expired and they didn't send me a new one (they had sent my husband one). So I called, and they tried to talk me into a debit card instead, but they did issue me just the ATM card.

 

[MichaelB]

There is one other difference between the consumer liability of a fradulent charge on a credit card vs a debit card. On the credit card one registers a dispute and is then under no onligation to pay while the dispute is investigated and resolved. A debit, on the other hand, is money already withdrawn from one's account. The financial institution has an obligation to temporarily return the funds pending investigation, but a week without the funds is easy to imagine, and could be much more if the bank feels the withdrawals were in some way authorized.

From the FDIC. FDIC: FDIC Consumer News Fall 2009

In addition, with transaction errors, banks have up to 10 business days (and in some cases 20 business days) to promptly conduct an investigation after receiving notice from the debit cardholder. If more time is needed, typically because of special circumstances, they can take up to 45 days (and in some cases 90 days) to investigate, but they generally have to credit the consumer’s account for the amount of the alleged error on a "provisional" (temporary) basis pending the outcome of the review.

"Until the bank provides provisional credit, you could temporarily be out of pocket for the amount in dispute," said Richard Foley, an FDIC attorney who specializes in consumer issues. "This would not typically happen with a credit card because consumers can withhold payment of the amount in dispute."

FTC consumer protection Lost or Stolen Credit, ATM, and Debit Cards | Consumer Information

 

[audreyh1]

Yep! A biggie!

 

[donheff]

I would not recommend use of debit cards to avoid the problem. Debit cards make the problem worse for the consumer since debit cards do not have the same legal protections against fraudulent use that credit cards have. The banks lobbied long and hard to make sure that debit cards were not covered like credit cards. Let the consumer beware.

If I used a debit card on any regular basis, I would have it linked to an account that had only a minimum of money in it at any time, so they could not drain a large account.

I have only one debit card -- my bank ATM card and I use it only at ATMs. As noted above the news says the hackers pulled info from point of sale including PINS on debit cards. With that info they could clone debit cards and sell them with PINS. The culprits could potentially access accounts from an ATM and transfer money between accounts, pull funds, etc. Most banks would probably cover you but they are not obliged to do so.

Scary indeed. I used one of my favorite credit cards at Target during the period reported to be at risk and the CC company stopped a couple of routine transactions a few days later. I suspect they are being hyper vigilant given the Target breach but don't want to cancel millions of cards during this critical season. I use that card for a couple of important auto payments and am leaving the country shortly and will want the card to work overseas. I was afraid the CC company might end up cancelling the card in a week or two at an inappropriate time so I called and had it cancelled myself so I can get ahead of the game. Needless to say, customer service was busy but understanding.

 

[MichaelB]

Anyone that has used a debit card at Target during the breach period should change the PIN immediately.

Well, I must have used my credit card at Target because I just received an email from them. It is legit. Long & detailed, informs me of the data breach and lists the actions I should consider (monitor my account, place a fraud alert, etc). Lots of legalese.

The thing is, they use an email address I only use for financial accounts - banks and investment. Never merchants. It must have been forwarded to them by the nice folks over at Fido Visa. It doesn't add much security, but it does add a little. Or did, at least.

 

[REWahoo]

Anyone that has used a debit card at Target during the breach period should change the PIN immediately.

DW used her debit card at Target during that time period. We were discussing monitoring her account carefully and changing her pin when we got this from the bank this am...

How can I find out whether my card was affected?

USAA is investigating this recent breach at Target stores to determine whether USAA Bank credit or debit cards were affected. USAA Bank actively monitors account activity through sophisticated software and processes to help protect you from fraud. However, we strongly encourage you to monitor your account(s) on mobile or usaa.com and review your monthly statements carefully. Notify USAA immediately if you see any unauthorized activity by calling 800-531-USAA (8722).

Should I reset my PIN?

There is no indication that any card PIN information was compromised. While you are welcome to reset your PIN at any time, it is not necessary as a result of this incident.

Should I cancel my card?

There is no need to cancel your card. USAA Bank has software and processes that monitor your accounts for suspicious activity, and if we determine your account is at risk, we will notify you and reissue your card. USAA has a Zero Liability Policy that helps protect you, so that in the event any unauthorized purchases occur on your credit or debit card account, you will be fully reimbursed in accordance with the policy.

Is USAA going to reissue my card?

USAA Bank has a highly sophisticated fraud detection team that is constantly monitoring account activity, and if we determine your account is at risk, we will notify you and reissue your card(s).

 

[Midpack]

Called Discover last night (used at Target during the period in question), and got a recorded message saying we would not be liable, that they were monitoring closely, and suggested we do the same. DW reduced the $limit at which we are instantly notified of any charges and we will continue to review charges daily.

Presumably Target is going to take a big sales hit, and some increase in CC fines & fees. I feel sorry for them on one hand, but it was their breach...

 

[MichaelB]

DW used her debit card at Target during that time period. We were discussing monitoring her account carefully and changing her pin when we got this from the bank this am...

The first report I saw indicated PIN numbers were included in the breach. Recent reports say not so, only card info (number, expiration, security). Changing a PIN is a PITA.

I'd believe USAA over all the others.