Top Hacked Bank Credit Cards – What Credit Cards Not to Use?

Credit Cards Hacked

Technology has undoubtedly made many lives easier as it has blossomed in recent decades, but one thing it has not made easier is privacy. Customer information is constantly being pursued by nefarious online hackers; they look to exploit security flaws, obtain customer information, and make a financial gain from this data.

While most credit cards are usually safe without so much as a problem, there are some companies in the industry which have had their fair share of security breaches that sometimes have affected hundreds of thousands of credit card customers.

Citigroup

Just this year, Citigroup was forced to contact its credit card customers with the unfortunate news that hackers had broken into their system and stole a whole raft of customer information. The issue affected more than 200,000 of the company’s credit card account holders and made international headlines.

The hackers were luckily prevented from obtaining the truly sensitive information held by Citigroup: Social Security numbers and the three-digit card security codes that prevent them from being used for faceless, signature-free online purchases. Even so, the hackers obtained email addresses, mailing address, phone numbers, and other sensitive information.

Yet another incident involving Citigroup’s credit card security dates back to 2005, when a UPS truck carrying customers’ sensitive information was “lost” according to the company. That incident affected a staggering 3.9 million credit customers; the lost information included complete account histories, home addresses and even the dreaded Social Security numbers.

The tapes containing this information were never “found” by Citigroup, leading most industry analysts and professionals to believe the data was in fact stolen. Nothing has ever been proven, however, and Citigroup customers have simply had to cancel accounts, change precious personal information, or take other steps to ensure the integrity of their personal and financial information.

For that reason, customers should use extra caution when signing up with Citigroup for one of their many Citi Platinum or Rewards cards. It’s not that the company is intentionally exploiting its customers’ information, but a 3.9 million person data “loss” combined with a 200,000 person digital security breach is simply too high of a risk for most to take.

T.J. Maxx Customers Beware

Another digital security breach that showed the resolve of the world’s hacking community involved retail giant T.J. Maxx and their sister brand, Marshall’s. Both companies offer a store-exclusive credit card to their customers in exchange for special promotions and discounts, making the cards quite popular among regular shoppers.

In 2007, the company admitted to a wide-ranging security breach that compromised the integrity of 40,000 of its retail credit card accounts. The company’s stores, at the time, were using highly insecure wireless networks that exchanged unencrypted data, allowing hackers to see a full range of information that included home addresses, account history, phone numbers, and account numbers.

It is estimated that this breach of security cost more than $1 bilion in financial damage to customers and the company itself. While eleven people were found to have conspired in the plot to obtain this data, only one was arrested. The others, presumably, are looking for their next target.

Hackers Don’t Just Target Credit Cards

While the popular notion might be that hackers are exclusively targeting credit cards, or their providers, that is simply not the case. As it has gotten harder and harder to breach the security systems of big credit providers such as Citigroup, hackers have increasingly focused on targeting payment processors and any large, nationwide business that accepts credit.

Payment Processing Companies

In 2005, a lone hacker breached CardSystems, a payment processing company that serves both Visa and MasterCard. It is likely that the breach was internal, dispelling the notion that all hacking attempts come from outside groups or individuals with nefarious plans.

In all, 36 million Visa and MasterCard credit card customers were affected, and the damage wasn’t simply limited to the United States. Because of CardSystems global reach, HSBC customers in Asia were as directly affected as Chase Platinum users here at home.

The sum of the damages incurred by this astronomical leak of customer information remains unknown, as it spanned continents and credit companies. No one has been charged in the incident which put customers’ full financial data at risk — account numbers, security codes, Social Security numbers, and home addresses.

Meanwhile, hackers are increasingly stealing data from companies that accept credit cards, having compromised the payment processing systems for major companies like Best Western Hotels, 7Eleven convenience stores, and even the Sony PlayStation marketplace.

Using these tactics, it is possible for hackers to record transactions and obtain customer account numbers as they swipe their cards through a card reader or use their “online wallet” to make purchases. 140 million 7Eleven customers fell victim to this type of hacking in 2009, and customers at all of Best Western’s 1,300 hotels were exposed to the risk of identity theft over three months a year earlier.

Meanwhile, in 2011, hackers managed to penetrate the security of Sony’s PlayStation Network, an online marketplace for console owners and home to more than 77 million accounts which contained stored financial information. The company quickly shut down the service and investigated the breach and the outage lasted more than ten days as Sony shored up its online security.

No Safe Place

Hacking through digital security systems is an ongoing threat to customers that transcends their credit card provider. Though Citigroup is by far the company to avoid in terms of information integrity, there is simply no telling which payment processor or merchant a hacker will target next.

For this reason, it is important to always remain vigilant and pay close attention to account statements, charges, and other irregularities each month. Identity theft can be caught and prosecuted, but only with the most vigilant and diligent of eyes.

Author Bio: Samantha is a freelance writer for a site that helps people learn about credit cards and compare the best credit cards for free. She loves tech gadgets and is addicted to her iPad and iPhone, so says her husband.

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