Feds Weigh in on Data Breaches - Legal News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Legal » Feds Weigh in on Data Breaches

Feds Weigh in on Data Breaches

Add to Favorites:
Feds Weigh in on Data Breaches
January
29

Millions of people are watching their credit card and bank statements closely due to recent payment system security breaches at Target and Neiman Marcus. The compromises have involved not just account numbers, but names, addresses, and other sensitive personal information.

The Consumer Financial Protection Bureau (CFPB) has published some advice for customers on how to protect themselves and where to get help if they are concerned that their information has been leaked.

The advisory on the CFPB website, provides information on what to look for following a data breach. Steps to take include monitoring accounts for unfamiliar charges, alerting banks or credit issuers immediately if there is any suspicious activity found, following up complaints in writing, and avoiding giving out personal information over the phone.

They also note the importance of keeping adequate records of all communications with banks and credit card issuers. The CFPB guidelines instruct consumers that when making a call, they should note the time and date as well as the name of the person spoken with. Copies of all written communication should be kept on file. That way if there are any questions later, folks have documentation.

Debit, credit and prepaid cards

Over 70% of Americans carry at least one credit card, according to the CFPB. But debit cards are more commonly used for consumer purchases than credit cards, with prepaid card use increasing steadily.

Prepaid and debit cards are not more vulnerable to being compromised, but it can create a bigger headache for consumers if fraud is committed because funds are drawn directly from bank accounts or prepaid account balances, essentially draining the victim of funds immediately.

With credit cards, customers are not liable for fraud that occurs because of a stolen account number. That is federal law. However, with debit cards, unauthorized charges must be reported in a timely fashion. If the charge appears on a statement, but the actual card has not been stolen, customers must report the charges within 60 days. If the actual card or PIN has been lost or stolen, then the unauthorized charge must be reported within 2 business days in order to limit cardholder liability.

Card fraud may occur months after a breach, so consumers should continue to monitor their accounts closely. If they used a credit, debit or prepaid card at a retailer within the time period that a breach was active, customers may want to call their card issuers and request a new card and account number. Changing their PIN is also a smart idea, according to the CFPB.

Target is offering free credit monitoring for individuals affected. Keeping an eye on credit reports, as well as payment accounts, is a good idea following a widespread security breach.

If consumers are unhappy with the way their bank or credit card issuer responds to concerns about fraudulent charges, the CFPB urges them to make a report. They can do so via the CFPB website complaint form, located here.

Add to Favorites:

Related News:

Feds Unveil Prepaid Card Protection Proposals
Feds Unveil Prepaid Card Protection Proposals

Posted: November 14, 2014

Last summer, the Consumer Financial Protection Bureau (CFPB) asked consumers to weigh in with their complaints about prepaid card products. Continue reading
MasterCard Steps Up Fraud and ID Theft Prevention
MasterCard Steps Up Fraud and ID Theft Prevention

Posted: June 17, 2014

In the face of several recent major data breaches and increasing consumer concern about payment security, MasterCard is putting in place new measures to protect cardholders. Continue reading
Ethoca and FICO Fighting CNP Fraud
Ethoca and FICO Fighting CNP Fraud

Posted: January 27, 2017

FICO and Ethoca, a technology company, are partnering up on a project providing card issuers and online merchants with a way to not only boost card acceptance, but to thwart ecommerce fraud and disputes. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. Bonus Miles - For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee
For Bad Credit