Stories about cyber-attacks and identity theft are frighteningly common here in the United States. Last year alone, 143 million people were victims to one type of cyber-attack or another, and nearly half of us are afraid we’ll be financially impacted by identity theft in the future.
The worst part about it is, most people don’t realize they’ve been hit until it’s too late.
-38% of victims didn’t know they were defrauded until they tried to apply for a credit card.
-37% were told they were compromised by a service or agency.
-20% didn’t know they were hacked until they saw a credit report.
-4% were alerted by police or other law enforcement agencies.
Greg Anton, Chairman of the AICPA’s Financial Literacy Commission, says Americans have to be more vigilant and proactive about protecting their information.
“Protecting your information is an ongoing process that requires you to be vigilant, identify where you can improve and take action to firm up your safeguards. This means regularly monitoring your credit card and bank statement and periodically checking your credit report for anything that looks out of the ordinary.”
Still, it’s not always a consumer’s fault. Just shopping at a store can put you at risk.
A few months ago, hackers were able to steal data from Lord & Taylor and Saks Fifth Avenue, impacting nearly 5 million customers. This is only one of the many high-profile cases of data breaches to occur.
Other stores and restaurants that have had breaches so far in 2018 include:
-Macy’s
-Adidas
-Sears
-Kmart
-Delta
-Best Buy
-Under Armor
-Panera Bread
-Chilis
-Forever 21
-Sonic
-Whole Foods
-Gamestop
-Arby’s
This is a long list of businesses Americans frequent, but the stats are worse than you can imagine. According to the cybersecurity company Agari, 44% of all businesses were victim identity theft that involved a hostile takeover of an account.
A takeover of an account means someone steals personal data and are then able to gain access to the victim’s credit cards and bank accounts.
According to a survey from IBM, only 20% of Americans trust companies to keep their data safe and secure. 73% believe these companies care more about profits than protecting customers and should do more to prevent crime. While the trust factor isn’t fully in place, it doesn’t seem to stop consumers from shopping or eating at these establishments.
If you’re concerned about hacking and identity theft, there are several ways you can better protect yourself.
1) Keep a good eye on your credit report and accounts for fraud. Don’t be afraid to look over every detail and every dollar to make sure nothing looks suspicious.
2) Use checks and cash more often. It may be more convenient to swipe the card, but with the vast majority of businesses dealing with identity theft issues, it’s safer to hit the ATM and pay with cash.
3) Try to shop more local. The hackers mainly target the big money stores, like the national retail chains. Smaller businesses are less likely to be on the radar of identity thieves.
4) Cut down your online presence. If you do a lot of online shopping, you are more likely to get hacked.
5) Get protection. There are multiple ways to sign up for theft detection, either through your bank, on Credit Karma, or even LifeLock.
“While it’s positive that Americans are taking steps to mitigate the risk from cyber breaches, each time there is a new breach in the headlines there is the risk that the public becomes numb,” Anton says. “Identity theft may seem like it’s inevitable … it doesn’t have to be.”
