Online fashion retailer Revolve recently disclosed that it had been hacked and that the cybercriminals were able to steal names, contact information as well as credit card and debit card numbers of its customers.  Data breaches like this are common occurrences and one of the major takeaways from this is that while it may be convenient to store your credit card or debit card with online stores with which you regularly do business, you put yourself in financial jeopardy by doing so.

This is also a good time to remind you that when choosing whether to use your credit card or debit card for retail transactions, you should always pick your credit card.  Your liability for unauthorized use of a credit card is limited by federal law to no more than $50 and most credit card companies will not hold you responsible for even that amount.  However, your liability for unauthorized use of your debit card can potentially be unlimited if you do not promptly notice and report the fraudulent use of your card thereby putting the entire bank account tied to your debit card in jeopardy.  In addition, even if you notice and report the unauthorized use of your debit card immediately, your bank account is frozen while the bank investigates the matter thereby temporarily taking away your own access to your bank account.  Limit your debit card use to ATMs.

TIPS

Along with never leaving your credit card on file with an online retailer and limiting the use of your debit card to an ATM card, it is also important to regularly monitor your credit reports on a regular basis for early indications of identity theft.  The three major credit reporting agencies now provide free weekly access to your credit reports so you can monitor your credit reports easily on your own.  Here is the only link to use to get your free credit reports.https://www.annualcreditreport.com/index.action

Some scammers have websites that appear to offer “free” credit reports, but if you read the fine print, you often may find that you have signed up for unnecessary services.
As for the victims of this data breach, if you have not already done so you should freeze your credit.  It is free and easy to do.  In addition, it protects you from someone using your identity to obtain loans or make large purchases even if they have your Social Security number.  If you have not already done so, put a credit freeze on your credit reports at each of the major credit reporting agencies.  Here are links to each of them with instructions about how to get a credit freeze:
Finally, be wary of anyone who calls you asking for personal information in regard to these data breaches as that is a favorite tactic of the hackers to lure you into providing personal information that can lead to your becoming a victim of identity theft.  Scammers often pose as the breached company and contact victims of the data breach to convince them to provide personal information.
If you are not a subscriber to Scamicide.com and would like to receive daily emails with the Scam of the day, all you need to do is to go to the bottom of the initial page of http://www.scamicide.com and click on the tab that states “Sign up for this blog.”