PERSONAL FINANCE
How consumers should proceed after federal authorities cracked what they described as one of the largest Internet hacking and fraud cases in the U.S.
Q. If one store is hacked, is the entire company system compromised?
A. It depends on the system, experts say. In some cases, hackers can get into corporate servers, but other times they can only gain access to one store.
Q. How vulnerable are consumers?
A. “Very vulnerable,” said Avivah Litan, a security analyst for Gartner Inc. Litan recommended that consumers use credit cards rather than debit cards that require a personal identity number because of the risk that PINs stored in the merchants’ computer systems could be stolen.
Q. How vulnerable are people with home wireless networks?
A. If you have an unsecured wireless network, neighbors or hackers could piggyback on the network or access information on your computer. Also, any crime or spam sent through your network by an unauthorized person can be traced back to you. Use encryption, anti-virus and anti-spyware software, a firewall, and change the default settings on your router.
Q. How do consumers know if their information was compromised?
A. Signs of identity theft include:
•Missing bills. A thief could have changed the billing address for your account.
•Receiving information about credit cards you didn’t apply for, accounts you didn’t open, or purchases you didn’t make.
•Being denied credit.
Q. What can consumers do if they suspect unauthorized activity on their accounts?
A. Monitor financial statements and credit reports regularly, keeping an eye open for signs of identity theft. If your information has been compromised, place a fraud alert on your credit reports, consider filing a complaint with the FTC and accepting any offer of free credit monitoring from a company that has had a breach.
Q. What is the consumer’s exposure in identity theft cases?
A. For lost or stolen credit cards, federal law limits liability to $50 for unauthorized charges. For ATM or debit cards, liability is limited to $50 if the loss is reported within two business days of discovering the loss of the card, or $500 if the loss is reported within 60 days. After that, liability could be unlimited.
Newsday