hacked credit card

Hacked Credit Card: The Biggest Consumer Risk

By John DiGiacomo

A hacked credit card is one of the biggest problems consumers face. Someone who is not authorized to use a card can gain access to the credit card number, the name on the card, and the PIN. They can then use this information to make unauthorized purchases. Alternatively, hacked credit card information is sold to thieves through online black markets. Buyers of hacked credit card information often use the ill-begotten credit card information to commit fraud.  

But how do thieves get access to this information in the first place? How do they hack credit cards, and is it a common occurrence? Below is an overview of the most common ways that cyber thieves gain access to credit card information.

How Credit Card Information Gets Hacked

Hacked data systems are one of the leading sources of leaked credit card information. The hack could occur at:

  • the point-of-sale device located at a merchant’s store.
  • the processor of the transaction, i.e., the network associated with the company who processes the credit card transaction could be hacked into.
  • a point-of-sale service company or vendor, i.e., the company whose technology facilitates the credit card transaction.
  • At an online merchant’s e-store.

The likelihood of a consumer learning about a hacked credit card at any one of the above identified levels is low. Hacks are difficult to detect, and liability for the security breach is often something that is difficult to pin down. Furthermore, banks and credit card companies often do not tell their customers the source of the data security breach without some sort of legal interference that requires them to do so. Often banks and credit card companies simply issue new credit or debit cards to the affected customers. Banks no explanation other than a security breach occurred and that the customer may have been affected by it.

How Common is Credit Card Fraud?

CreditCards.com reported that 82% of credit card fraud was committed due to credit card hacks. This was prior to the requirements that all credit cards include a computer chip in them. The chip technology, known as EMV, is likely to reduce credit card hacking significantly as the chips make counterfeiting more difficult.   

A Data Breach Lawyer Can Help

Data security is a rapidly changing area of law. Revision Legal makes a consistent effort to be up-to-date on the most recent developments in this area. Revision Legal has worked with businesses and data security breach victims to exercise their rights. If you have concerns about your exposure in a data breach incident, contact the experienced data breach attorneys at Revision Legal. You need the legal team from Revision Legal in your corner fighting for your rights today. Contact us using the form on this page or call us at 855-473-8474.

Photo Credit: Flickr user Don Hankins

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