The theft of financial information can be just as damaging as identity theft. Are you protected?

There have been many stories in the news recently regarding information breaches and data hacks into various retailers, companies, and even against individuals. In an increasingly digital world, protecting information is difficult, and the transfer of so much data around the clock often leaves this information vulnerable to attack. Data breaches, information hacks, and online security are incredibly important to keep track of in order to make sure your information is safe, and how you can best protect yourself and your information.

Technology can be a double-edged sword. On the one hand, we have the ability to transmit a very large amount of data instantly; we can wire money around the world, talk to someone we’ve never met, and conduct nearly every aspect of business on our computers. All this technological availability leaves us vulnerable, though, and with data breaches and hacks on the rise, keeping your information safe is of the utmost priority.

Payment protection plans

A common information breach is identity theft. This is when someone has acquired identifying information about another person, information that they can use for their advantage. This information can include names, Social Security information, or banking information.

Another common data breach is that of a credit or debit card. In cases like this, a person’s name may not have been compromised, but the identifying information from their debit or credit card has been accessed by an outside party. With another person’s payment information a thief could drain a bank account, open a new credit card, or ruin that person’s financial life.

When a credit or debit card has been hacked, the owner may not know about it until the damage has already been done. Charges can accrue very quickly and unless a person is checking their account regularly, they may not even know that their information has been stolen. This is also a problem for retailers, who may be stuck “between a rock and a hard place” when a bank reverses charges because of a payment hack.

Banks have safeguards in place to flag suspicious card activity, and can offer a certain amount of protection for their customers whose cards are tampered with. Each bank has different methods of obtaining this protection, and each retailer that accepts that card must also have protections in place to keep their payment systems safe and secure.

Insuring payment protection

Retailers need insurance in order to protect themselves financially from data hacks, just as individuals should take steps to protect their financial information to the best of their ability. When a person’s payment information has been hacked, retailers have to make sure that the hack didn’t originate with their system.

Working with banks, retailers, and insurance companies to keep things like identity theft and payment information theft to a minimum is a complicated but worthy task. Keeping payment information in the hands of those to whom credit and debit cards actually belong protects the financial relationships between people, banks, and commerce that keep our world going.

To learn more about how you can protect your payment data contact Skyline Risk Management, Inc. at (718) 267-6600 to voice your concerns.