Posts Tagged ‘credit card fraud’

Hackers broke into a computer at Wyndham Hotels, in July 2008. They were able to steal tens of thousands of customers’ credit card records, card numbers, including guest names, expiration dates and highly sensitive data from the cards’ magnetic strip.

It’s a company’s worst nightmare, particularly in the face of an economic downturn, and to make matters worse, Wyndham didn’t realise the theft had occurred until September. The company remains unsure about how many individual credit card accounts were negatively affected by the Wyndham incident, however, it’s safe to say today most holiday-makers will think twice before paying for their vacation on credit!

So exactly how did such an incident occur? The fraudsters involved in this plot had clearly devised an in-depth plan to steal the data, but the truth is, thousands of hackers steal credit card information on a daily basis, using far simpler tactics.

There are two main strategies hackers use to access credit card information: through password theft, or via a virus or Trojan horse.

Password Theft

Cracking someone’s password is the most common method that hackers use to bypass security software, and access data such as your credit card information.

A password is really just a simple combination of letters, numbers and special characters - and, thus, there are a select number of combinations that can be generated. A high-end computer will be able to, eventually, crack any password, no matter how complicated or long it may be, but you can take certain measures to combat their efforts.

As a consumer, your best bet in protecting yourself is to create the strongest password possible. This means a unique combination of letters and numbers, special characters if you can remember them, and even a mix of upper and lower cases if possible. The greater the strength of your password, the longer it takes for the computer to crack - and the longer it takes to crack, the greater the risk of the hacker being caught. Simple passwords will get cracked first, so aim for long, complex, and unusual combinations.

Worms, Viruses and Trojan Horses

Viruses appear in all shapes and sizes, and have many - mostly nasty - purposes. Some viruses are written to delete your files, and others are written to send out lots of spam - but the absolute worst viruses will infect your computer and collect valuable information. These are called Trojan Horses.

A Trojan Horse will typically install itself and run covertly in the background, and the user of the computer - that’s you - is none the wiser that it’s even there. It sits silently and collects data on everything you are doing, from logging into your internet banking to making online purchases, and then sends that information back to its creator.

The thing about Trojan horses is that you must open the virus for it to activate - so if you practice extreme caution when web browsing and opening emails, you should be able to avoid an infection.

If you receive an email from ‘Jenny Shields’ with an attachment that says ‘Great_picture.exe’, for example, and you don’t know anyone called Jenny Shields, then delete the email immediately. When surfing the internet, if a bright and flashy pop-up demands your attention to claim a prize, don’t click on it - it’s a scam. Practicing common sense will definitely help you avoid becoming a victim.

Anti-virus and anti-spyware software should also be considered to aid in keeping your identity safe. Usually, the software will search and find viruses on your computer and in your inbox. It’s available for free, and the protection it offers could save you a lot of money, time, and hassle in the long term.

By enforcing these simple rules into your day to day life and using a trusted credit card can immediately lower the risk you’re at from fraudsters infiltrating your life!

In July 2008, hackers broke into a computer at Wyndham Hotels. They stole tens of thousands of customer credit card records, including guest names, card numbers, expiration dates and highly sensitive data from the cards’ magnetic stripe.

It’s a company’s worst nightmare, particularly in the face of an economic downturn, and to make matters worse, Wyndham didn’t realise the theft had occurred until September. The company remains unsure about how many individual credit card accounts were negatively affected by the Wyndham incident, however, it’s safe to say today most holiday-makers will think twice before paying for their vacation on credit!

So exactly how did such an incident occur? The fraudsters involved in this plot had clearly devised an in-depth plan to steal the data, but the truth is, thousands of hackers steal credit card information on a daily basis, using far simpler tactics.

Two main strategies are commonly used by hackers to access credit card information: through password theft and via a virus or Trojan horse.

Password Theft

Cracking someone’s password is the most common method that hackers use to bypass security software, and access data such as your credit card information.

A password is really just a simple string of letters, numbers and special characters - and, subsequently, there are a finite amount of combinations that can be created. A powerful computer will be able to eventually crack any password, no matter how long or complicated it is, but you can do your best to thwart their efforts.

As a consumer, your best bet in protecting yourself is to create the strongest password possible. This means a unique combination of letters and numbers, special characters if you can remember them, and even a mix of upper and lower cases if possible. The greater the strength of your password, the longer it takes for the computer to crack - and the longer it takes to crack, the greater the risk of the hacker being caught. Simple passwords will get cracked first, so aim for long, complex, and unusual combinations.

Worms, Viruses and Trojan Horses

Viruses appear in all shapes and sizes, and have many - mostly nasty - purposes. Some viruses are written to delete your files, and others are written to send out lots of spam - but the absolute worst viruses will infect your computer and collect valuable information. These are called Trojan Horses.

Trojan Horse’s will typically install itself and run hidden in the background, and the user of the computer - yourself - is none the wiser that to it even being there. It sits silently and collects data on everything you are doing, from logging into your online banking to making purchases over the internet, and then sends that information back to its creator.

The thing about Trojan horses is that you must open the virus for it to activate - so if you practice extreme caution when web browsing and opening emails, you should be able to avoid an infection.

For example, if you receive an email from ‘Jenny Shields’ with an attachment that says ‘Great_picture.exe’, and you don’t know anyone called Jenny Shields, then delete the email immediately. When surfing the worldwide web, should a bright and flashy pop-up demand your attention to claim a prize, don’t click on it - it’s most likely to be a scam. Practicing common sense will almost certainly help you avoid becoming a victim of fraud or infection.

You should also consider using anti-virus and anti-spyware software to help keep your identity safe. Usually, this software will search for viruses on your computer and in your inbox. It’s available for free, and the protection it offers could save you a lot of time, money and hassle in the long run.

By enforcing these simple rules into your day to day life and using a trusted credit card can immediately lower the risk you’re at from fraudsters infiltrating your life!

As online shopping becomes more popular with savvy consumers around the world, an unwelcome side-business has also increased in activity: credit card fraud.

Credit card fraud is certainly not limited to the online marketplace, however, internet users experience more than their fair share of dodgy transactions every day.

To protect your credit card details when shopping online is virtually impossible, but there are plenty of things you can do to minimize your risk.

Your first step towards protecting yourself against credit card fraud is very basic: be especially careful when using your credit card online. Never inputting your credit card details unless you’re certain the website is a reputable and trustworthy. Most online check-out systems allow you to pay via third party processors like PayPal, which offers added protection against credit fraudsters, so it would be wise to consider using these wherever possible.

Also, you should not respond to emails that ask you to follow certain links and enter confidential information - even if the site may appear to be a trusted, for example eBay or Amazon. Fraudsters have been successful in developing sophisticated websites and software that looks just like the real thing, so always assume that the link can not be trusted. Instead, shut down the window and open another browser, type in the web address manually, and carry on with your transaction this way.

It’s prudent to remember, as well, that emails are not secure, so you should think very carefully before sending credit card information via email.

In saying this, you should keep in mind that the internet can also help you to avoid becoming a victim of credit card. If you regularly check your account balance online - ideally, at least once per week - you can monitor your transactions and, hopefully, identify any unusual purchases early on. When you receive your monthly statement in the mail, you should also consider cross-referencing it with your receipts.

In an offline environment, never let your credit card out of your sight. Skimming - where credit card details are copied, and then duplicated onto new cards - is becoming more and more common, but there are steps you can take to minimize this risk.

If you’re in a restaurant, for example, don’t hand your card over to the waiter; instead, walk up with him or her to the cashier and hand over your card yourself. If you’re in a high-end restaurant and you’re embarrassed about transacting this way, apologize and tell the waiter that you’ve been the victim of credit card fraud in the past, so you prefer not to let your card out of your sight. It’s better to be embarrassed for a few minutes, then to find out that thousands of dollars worth of transactions have been illegally charged to your card!

What if your account has been compromised?

If you suspect illegal transactions have been charged to your credit card, inform your card provider immediately. They will immediately cancel your card and issue a fresh card, to prevent any further transactions from being applied. Also, if they investigate and do find that unlawful transactions have occurred, your account will be reimbursed.