Earlier this month, you should have received your new Smart EMV credit card in the mail. Smart credit cards have an embedded security chip, called an EMV chip. The chip is designed to make credit cards more difficult to duplicate.
With the old cards, thieves with special readers could easily record the information contained in the magnetic strip. They could then duplicate the credit cards. This was easy to do: the information in the magnetic strip is stagnant.
The EMV chip, however, creates a unique one-time code every time the card is inserted into a special card reader. If these cards are duplicated, they would not work. The one-time code would no longer be valid and the card would be denied.
But don’t stop being vigilant! While EMV card protections work well when you use the physical card, they offer no protection with on-line purchases. Here you enter your credit card information from your computer and the merchant cannot read your card to receive the unique code.
Now that it is more difficult to duplicate actual credit cards, it is expected on-line fraud will increase. Thieves will continue to try to steal credit card numbers from computer databases. The information they collect can be sold and used for on-line purchases. This is known as “Card Not Present” or CNP fraud. The number of fake applications for credit cards is also expected to increase.
Here are 10 tips to help keep your credit card and personal information secure:
1. Read your credit card bills. Check for unauthorized activity.
2. Even better, check your account activity on-line frequently.
3. Do not give out your credit card number over the phone unless you initiated the call to a merchant you trust.
4. Do not respond to e-mails asking for your credit card information, even if the e-mail appears to be from a legitimate company. If in doubt, locate the company’s telephone number yourself (not from the e-mail) and call.
5. Report stolen or lost credit cards immediately.
6. Log on to your credit card company’s website and set up account alerts to automatically notify you when your credit card number is used.
7. Keep your credit card in a secure place, out of site. Don’t leave it unattended in stores, at work, in your car, even at home when strangers are present.
8. Refrain from giving out your credit card number in public places where others can overhear and via public Wi-Fi networks.
9. Check your credit reports regularly. One report per year per credit reporting company is available free at annualcreditreport.com.
10. Put a security freeze on your credit file at the three major credit reporting bureaus (Experian.com, TransUnion.com, and Equifax.com).
With each evolution in fraud prevention, thieves will continue to adapt and find new ways to steal personal data. It is up to us to be diligent about protecting our information.
Do you have any tips on protecting your credit card information? Or experiences to share?
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.
Blog text © 2015 by Money Care, LLC
