There seems to be a surge in data security attacks lately. First came news of the Target attack. Then Neiman Marcus. Then the U.S Courts. Then Michael’s. Here are four points to consider about data security:
1. Beware of fraudsters engaging in post-breach fraud.
After the Target breach, fraudsters sent out fake emails purporting to be from Target about the breach and trying to trick people into providing personal data. It can be hard to distinguish the real email from an organization having a data breach from a fake one by fraudsters. People are more likely to fall prey to a phishing scheme because they are anxious and want to take steps to protect themselves. Post-breach trickery is now a growing technique of fraudsters, and people must be educated about it and be on guard.
2. Credit card fraud and identity theft are not the same.
The news media often conflates credit card fraud with identity theft. Although there is one point of overlap, for the most part they are very different. Credit card fraud involving the improper use of credit card data can be stopped when the card is cancelled and replaced. An identity theft differs because it involves the use of personal information such as Social Security number, birth date, and other data that cannot readily be changed. It is thus much harder to stop identity theft. The point of overlap is when an identity thief uses a person’s data to obtain a credit card. But when a credit card is lost or stolen, or when credit card data is leaked or improperly accessed, this is credit card fraud, and not identity theft.
3. Data breaches cause harm.
What’s the harm when data is leaked? This question has confounded courts, which often don’t recognize a harm. If your credit card is just cancelled and replaced, and you don’t pay anything, are you harmed? If your data is leaked, but you don’t suffer from identity theft, are you harmed? I believe that there is a harm. The harm of credit card fraud is that it can take a long time to replace all the credit card information in various accounts. People have card data on file with countless businesses and organizations for automatic charges and other transactions. Replacing all this data can be a major chore. People’s time has a price. That price will vary, but it rarely is zero.