Credit Card Number Hacking

Consumers need to be aware that credit card number hacking and identity theft exist and take the appropriate measures to protect themselves.

Stolen credit card numbers

In 2007 hackers stole more than 40 million credit and debit cards from major retailers, including TJX Companies Inc., the owner of discount clothing shops TJ Maxx and Marshalls. This theft represents one of the largest cases of identity theft in the United States. The thieves sold some of the credit card numbers over the Internet to other criminals. The other stores that were affected were:

• BJ's Wholesale Club Inc.
• OfficeMax Inc.
• Boston Market Inc.
• Barnes & Noble Inc.
• The Sports Authority Inc.
• Forever 21 Inc.
• DSW Inc.

The hackers supposedly installed "sniffers," software that grabs the data flowing in and out of a computer attached to a network, onto TJX's system in order to capture customers' card numbers, passwords and account information. The magnitude of this crime and the ensuing press coverage, helped raise awareness that credit card number hacking is a real threat to consumers.

If there is any good news from this incident it is the fact that corporations are learning how to protect themselves and their customers from data leaks and online security breaches. New technology is being developed almost daily to protect against hackers. On the flip side, hackers are also developing new technology at a similar rate to break codes and steal data.

Some hackers are using the Luhn algorithm to generate fake credit card numbers. This mathematical formula was developed by Hans Peter Luhn, an IBM scientist, and is used by financial institutions to generate the 15 and 16 digit card numbers used on legitimate cards. Hackers can also use this algorithm to run numbers that look just like the real thing. The only difference is that the fake credit card numbers can not be validated or approved for purchase use. Therefore there is relatively little danger of this card being used to make purchases.

The bigger danger is that these fake number cards are sold to consumers as the real thing and in the application process the unwitting consumer may turn over personal information, such as Social Security numbers, to the seller.

A study by The Nielsen Company, a provider of marketing information, revealed that 17 percent of United States households are wireless. Hackers often target wireless networks to get personal data. Here are some tips to protect yourself online:

• Use secure portals such as PayPal to make online payments. Transactions made on unsecure sites can expose your personal data.
• Be wary of fake emails asking you for passwords and personal information. Remember to never give out your passwords.
• Change your wireless network passwords to something personal. Do not use the computer generated passwords.

Credit card number hacking is a concern offline as well. Follow these tips to protect yourself offline:

• Make sure you get your credit card back after every transaction. Try not to let it out of your site.
• Don't give out your credit card number when you receive a phone call. Only give it out if you initiate the call.
• Sign your credit cards as soon as you receive them.
• Shred all credit card applications and receipts when are done with them.
• Keep a list of all your accounts and numbers.
• Review your bill each month for false charges and report any bad transactions immediately.
• Report a lost or stolen card immediately.

If you follow these simple tips, you will reduce your chances of being victimized by credit card fraud.

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