Is your MasterCard safe?
You've probably heard the news: last week, over 40 million million credit card accounts of
MasterCard International were
compromised by a security breach in the U.S.
In the Philippines, there are around 3.5 million MasterCard users. MasterCard Philippines said about
2,000 of those were affected, or 0.03% of the total. Owners of the accounts have already been informed and their cards will be replaced.
The hacking incident happened at a third-party processor of payment card data. It's shocking, to say the least. But
research shows that credit card fraud, at least in the U.S., is actually declining. Unbelievable?
Also, in incidents such as this security breach, only 2% of affected accounts experience fraudulent activity. Still, you can't just brush it off. To make doubly sure your account is safe (whether it's MasterCard, Visa, or American Express, since the latter two have been affected as well), follow this
advice:
- Check your balance and recent transactions. You can do this online (if your issuing bank Internet facility allows you to view your credit card account) or through the phone (most banks have 24/7 phone-banking services).
- Monitor your credit card statements thoroughly, not just now but always.
Remember, this is only one way wherein your credit card account could be stolen. Identity thieves have so many tools and schemes, including phising and hacker attacks. And don't forget good old physical theft, which happened to us. The worst part is that
Citibank Philippines forced us to pay the fraudulent transactions because the stolen card was reported after the transactions were made, pointing that this is part of their terms and conditions. We tried our best to contest it but they won't back down.
In the U.S., the cardholder is liable only to the first $50. Here, you get screwed not just once (some thief use your card), but twice (your credit card company will force you to pay). There should be new legislation to protect consumers.
