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Aug 18, 2009 -- Why you shouldn't be concerned about major identity theft
The theft of 130 million credit and debit card numbers by 28-year-old Albert Gonzalez of Miami has gotten so much press.
But Clark wants to take a contrarian spin on what's being called the largest identity theft of all time and explain why you shouldn't really be concerned!
Gonzalez and two unidentified Russians compromised the accounts of retailers like 7-Eleven and supermarket chain Hannaford Brothers, along with back-office merchant processors like Heartland Payment Systems.
Yet this is not a big deal for the average credit card holder. If you find fraudulent charges on your statement, just dispute those charges. The bank will already know about the security breach and just issue you a new card with a new number and you're done.
Debit card holders who may have been compromised will encounter more hassle. There are no ironclad protections for debit cards as there are for credit cards. Instead of the typical 60 days you have to dispute a credit card charge, you have 2 days to report fraudulent activity with a debit card. After that, it's your responsibility.
The real problem is true identity theft, where someone pretends to be you and opens new accounts in your name. That could easily be rectified if the banks used smart chip technology in cards. But they know it's cheaper to deal with cases of fraud on an individual basis than to overhaul the entire system.
Too bad.
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What others are saying
Don't Worry About It?
Come on, Clark! What's with telling people to not worry about 130 million credit/debit cards and their matching PINs being stolen? Do you really think that being able to skirt personal liability makes the damage to the already fragile economy go away? Believe me, we'll all pay for whatever funds are stolen, not as individuals, but on a societal level. You sound as though you believe in a free lunch, but someone always pays...
Security Freeze
I'm surprised Clark didn't take this opportunity to remind us about the Security Freeze. I froze my credit file as soon as it was available. Now, I don't worry about criminals opening up new accounts with my SSN.
Theft of 130 million identities of both debit and credit numbers
On all Florida News Stations, that I viewed last night 7/11, where these thefts occured, were not aware of the offense. I find this incredible or they are lying are the corporate level. It was not just credit card numbers that were sent overseas to use, but also debit card and pin numbers. Utilized by our neighbors on their way to work buying coffee and gas to get there at their local 7/11! We should be outraged! I've been a victim of identify theft before and it stays on your credit report; irregardless of you disputting it and you still get the 7 day a week creditor phone calls dialed electronically to your home from 8:30 am to 9pm.
or if you used cash at those places
If you budgeted for the month and only spent what you planned for ahead in cash, you wouldn't have to mess with paying at the store and then again when you get home as you would with a credit card.
Cash is a great way to finalize a transaction with no lingering concerns. It also keeps the government from creeping further into your personal finances as they started doing with H.R. 3221 [110th], which requires payment card providers to report your personal transactions to the IRS starting in 2010. It's only the gross amount now, but there's nothing stopping Congress from expanding that once the reporting infrastructure is in place.
Why you shouldn't be concerned about major identity theft
My credit card co. issued me a new card without my asking and due to a security breach. Then, reported to the credit bureaus that it issued a new card because I LOST THE ORIGINAL! This lowered my credit score!
