Card sharks

Today’s multibillion-dollar credit and debit card industry succeeds largely because using plastic is safe. Or at least it’s supposed to be.

Recent breaches in security have shown that the credit industry hasn’t necessarily kept ahead of hackers. Consumers and card issuers, take note.

In the most flagrant recent example, thieves stole names, numbers, security codes and more from as many as 40 million debit and credit cards used at the retailer Target. And it’s far from the only breach. … What’s going on? Beyond the eternal fact that someone will always find a way to pick a lock, most credit and debit cards use outdated technology.

[In] Target’s breach, the sensitive information was stolen from the cards’ magnetic stripes. In Canada and England, card data are stored on computer chips, which are considered more secure.

U.S. companies have said they will switch to chips in the next couple of years — and about time, too. But even that won’t guarantee security. Eventually, hackers will break into the chips.

For consumers, the two most important words are: Be vigilant. Carefully examine all credit and debit card records … to detect fake charges. Change the PIN of debit cards from time to time.

Fortunately, U.S. law protects consumers to some extent. If there are fraudulent charges, the bank issuing the credit card must pay all but a trivial amount. (The amount can be higher for debit cards.) Still, that’s no reason for card users to let down their guard. It’s certain that the hackers won’t.

— Hartford Courant