Planning a shopping trip? Be careful: Crime goes up in a down economy, and credit and debit card users are often the victims.
Identity theft is on the rise: In 2008, 9.9 million consumers had their data stolen, a 22% jump from 2007. Here are a few ways to better protect your wallet:
Shop the big names. With dozens of retailers and payment processors since 2006 reporting breached customer data, it's no surprise consumers look for certified safety seals such as VeriSign and Trust Guard on retail Web sites. But researchers say not all certification programs can ensure that retailers will follow security or privacy guidelines.
Phil Hochmuth, a senior analyst at research firm Yankee Group, which did a study on seals, cites an "overall lack of a generally accepted standard" of what they mean. "That's the nature of the Internet," he says.
Find some privacy. "Shoulder-surfing" is one way thieves can strike at ATMs and computers. Cell phone owners may be even more vulnerable to nosy neighbors, because they tend to type more slowly on their handhelds and use them everywhere, says Tal Garfinkel, a scientist at VMware who develops security technologies. For $3 to $10, e-tailers such as Overstock.com sell filters that darken phone screens when viewed from an angle.
Use the right card. If bogus charges were made on your credit card, you're not liable for them while they're being investigated. But banks can take up to two weeks before restoring debit card funds to your account. Plus victims could be liable for up to $500 in losses if they wait more than three days to report a problem or far more if they wait longer; credit cards cap losses at $50.
To be truly safe, "never use debit cards," says Paul Stephens, a director at the Privacy Rights Clearinghouse, a consumer group.
This article was reported by Neil Parmer for SmartMoney.
Updated March 5, 2010
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