My Credit Card was Compromised!

I received an ominous phone call from my credit card company the other day … apparently, my credit card had been compromised and they needed to cancel it and send me a new one. I was very much concerned. What did they mean by compromised?

I had just gotten back from Jersey and had used my card extensively. When I first tried to use my card there, it was actually declined and I had to call them to let them know I was on vacation. Why would they decline me?

Well, credit card companies use algorithms to detect fraud and since I don't live there, it must have seemed strange when I tried to make a purchase. Kudos to them for calling me, actually. I feel much safer knowing they're watching.

NO LONGER SECURE

Anyways, they wouldn't explain exactly what happened. Only that somewhere along the line my information was no longer secure and I needed to shut down my account immediately. While they wouldn't say much, here's what I suspected happened:

1.) I used my card in a store that may have had fraudulent transactions occur. The implication is that it could happen to me, even though my transaction was valid.

2.) My credit card data may have been stolen from a place where I recently used it. It would just be a matter of time before someone tried to make a transactions.

Actually, there are many different ways thieves can steal your credit card info.

It's getting a little frightening these days, with the advent of internet shopping, we're using our cards more and more, and it's inviting sophisticated methods to get a hold of our credit cards. But, it's not just sophisticated methods – it's the old tried and true ways to steal our info:

1.) Dumpster Diving for personal info

2.) Double-swiping your credit card. Why do they do that?  It freaks me out!

3.) New credit card offers – this one is particularly scary.

4.) Email phishing (not exactly old, but I've had email since 1995)

I wonder if we're getting a little careless and a little over-dependant on technology to protect us, when the simple, old-fashioned methods are probably still more effective.

MY IDENTITY

This whole experience has awoken me to the possibility of credit card fraud and especially, identity theft. If a thief can grab my credit card information from just my normal shopping activities, than what about the rest of my information? I can't think of anything more painful to go through then someone pretending to be me.

I am pretty careful, though, and here are a few tips to protect your information:

1.) Use your credit at only reputable stores you know. Be very wary when you go to a new city. You may not know the stores that well. I do recall buying dinner at a skeezy diner …

2.) Shred everything. I mean everything. I even shred junk mail – ANYTHING with my name on it.

3.) Keep track of your transactions with software – when I buy something on my credit card, it immediately gets entered into my software and I reconcile my card each month. I also set up recurring items that wouldn't have a receipt. No surprises – that's my motto.

4.) New credit card offers – only fill them out from a reputable company. Actually, I usually shred them ALL. I can call and get my own deals.

5.) Put a fraud alert on your credit information – you may not be able to open up new credit without a phone call or further follow up.

6.) Check your credit card transactions online – why wait for your statement?

It's actually getting to the point where I'm considering identity theft insurance. But, I would have to investigate further. It may not be worth it.

At the end of the day, being cautious is always the best protection.

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When looking at credit card offers and bank deals always make sure the product has top notch security. Most of the larger internet bank sites and credit card companies have top notch security, but always check over what they have in order to keep your information safe and secure and don't be afraid to call customer service before opening an account.