Identity theft is a relatively new kind of crime that is almost as sophisticated as the computer that you use every day. If your identity and credit card number are stolen, thieves can start charging merchandise they want like that iPhone, fancy fur coat or trip to the Caribbean. Credit card companies are getting more sophisticated about policing fake charges, though. They may call you to confirm a purchase if they see a suspicious-looking charge.
In 2005, more than 8 million Americans were victims of identity theft. Of that number, nearly two million had accounts opened or other types of fraud committed with stolen information. The rest had their credit cards hijacked and pilfered. That means that every CIO has to be on alert. And it is no easy task.
"Unfortunately, the way things are set up today, there is way too much information available in way too many places," said Adam Levin, chairman of Identity Theft 911 and a former director of New Jersey's Division of Consumer Affairs. If someone fraudulently uses a credit card, the card company ordinarily will reimburse the consumer for any loss. Nevertheless, CIOs working for a company that issues credit cards must be on the alert. This is a trend that is growing, not shrinking, and you better have a plan to deal with it in place, or you could end up with a big headache.
For more on the surge of ID theft:
- See this Washington Post article [1]
Links:
[1] http://www.washingtonpost.com/wp-dyn/content/article/2008/01/12/AR2008011200275.html?wpisrc=newsletter