How to Protect Yourself From Credit Card Data Breaches

Your credit card makes it very easy for you to make purchases, both in-person and online. Unfortunately, that kind of convenience can be exploited by criminals who look for opportunities to steal your credit card information and make unauthorized purchases for themselves.

The fact of the matter is that data breaches can cost you a lot of money. They can also hurt your credit rating if your refuse to pay for the unauthorized charges. On top of that, you end up on the phone arguing with a customer service rep about your situation.

The whole thing is a mess. Fortunately, there are some steps you can take to protect yourself.

1. Change Your Account Password

Even if you have one of the best secured credit cards, you can still be a victim of a data breach if somebody gets your password. Not only will your financial information be compromised, but you might also find some charges on your card that you never authorized.

If you suspect that your account has been compromised, change your password. Make it something that’s not easy to guess and isn’t used for any other website.

2. Check Your Statements

You might be one of those people who doesn’t go over your credit card statements every month. If so, it’s time to change.

Look at your statements and ensure that every single charge on the card was authorized by you. If you find something amiss, get in touch with the credit card company as soon as possible so you can get the matter resolved.

3. Keep Your Information Secure

Go out of your way to protect your information so that people can’t steal it. Shred your statements once you’ve gone over them. Keep your credit cards in a secure place so people can’t steal the number. Keep your debit card secure as well.

4. Sign up for Credit Monitoring

A credit monitoring service that will let you know if anything happens related to your credit. That way, if somebody steals your identity or opens a new credit account in your name, you’ll get notified right away. You’ll have the opportunity to take (legal) action as quickly as possible to prevent any lasting damage from being done.

5. Get a Replacement Card

If you suspect that your credit card has been compromised, call your credit card company right away and cancel the card. Also, request a replacement.

You might not be able to prevent any unauthorized charges that have already been placed on the card. However, you can stop the bleeding by cancelling the card as quickly as possible. The replacement card will ensure that you can continue shopping with a credit card.

6. Don’t Fall for People Asking You for Information

Following a data breach, somebody might call you in an attempt to gain the additional information necessary to use the card. For example, someone claiming to be a customer service rep who works for your credit card company will call and ask for your mother’s maiden name and your online password, claiming to use the information to ensure that their records are up to date (or words to that effect).

When that happens, hang up the phone. You’re the target of a phishing scam and you don’t want to become another victim.

Data breaches do occur. Fortunately, you can limit the risk that you’ll lose money or credibility with a common-sense approach about how you manage your credit card.