Settlementone, Fajilan Associates and ACRAnet Inc. are three credit report resellers that had unwittingly been selling credit reports to hackers. The hackers were able to access an estimated 1,800 credit reports.
These reports contain personal information that the hackers can use to steal the identities of their victims and make fraudulent purchases or withdrawals at a victim’s expense. The data lost in this case is particularly dangerous since it is a direct reflection of an individual’s buying and borrowing habits that will eventually damage his/her credit score.
This case reflects the growing inability of financial institutions in the US – especially banks – to effectively deal with credit and debit-based fraud. This runs counter to the global trend, with Europe and Asia taking the lead in implementing stricter security procedures like chip-based credit cards.
Banks and merchants tend to be turned off by the costs required to update security measures, resulting in the United States accounting for around 47% of fraud losses around the world.
This is why it is ultimately up to the individual consumer to protect him or herself. Monitoring credit report thrice a year and analyzing bank and credit statements will help in identifying, preventing and minimizing the financial damage caused by fraud.
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