What’s In Your Wallet?

Credit card fraud and identity thief are in the news often. It certainly is an alarming concern for most of us, since plastic is the popular form for making purchases. But, don’t be mistaken, I’m not only referring to credit cards. Debit cards can pose the same risk factor.

A few days ago, while riding my stationary bike, I saw this commercial…

And, then yesterday my thoughtful sister-in-law, Susan, sent this email to me. It read:

Some credit card companies install radio frequency identification chips in credit cards, and the U.S. Department of State puts these chips in passports.

The benefits of these chips – also known as RFIDs – is that they can hold more data than the magnetic stripes used in credit cards, and the data can be read more quickly.

But while the technology adds convenience in one way or another, these RFID chips store personal information that can be scanned with a RFID reader. Account numbers and expiration dates are displayed on a RFID reader’s screen almost instantaneously when the reader is within a few inches of an RFID-enabled credit card.

Identity thieves also use these readers in crowded areas like airports and shopping malls – and they can buy them online for as little as $100. These devices can be easily camouflaged in briefcases or tote bags, allowing electronic “pickpockets” to wander through crowds or even sit on a bench and collect personally identifiable data from passersby.

Who’s at risk?

The only credit cards that are currently vulnerable to this type of theft are those that allow users to tap or pass a card rather than swiping it at payment. Some of these cards have a symbol that resembles a Wi-Fi signal in the bottom corner to indicate their ability to transmit data.

All U.S. passports issued since 2006 have RFID chips. Passport holders can tell if their passport has this type of chip by the gold emblem with a circle in the middle that appears at the bottom of the passport’s cover. However, it’s more difficult for an electronic pickpocket to steal data from a passport with a RFID chip because a password is required. But it is still possible for information on the front page of the passport to be stolen.

What can people do?

Keeping cards and passports in regular wallets or purses will NOT protect from this type of theft because the RFID chips can transmit data through fabric. However, foil blocks the transmission of RFID signals. U.S. passports and green cards now come with protective foil sleeves.

For credit cards marked with a Wi-Fi-like symbol, protective foil sleeves – or even foil-lined wallets – can be purchased. Once a credit card is secured inside these protective sleeves, the cards’ chips can no longer be read by thieves. Wrapping cards in aluminum foil is another inexpensive, low-tech but effective way to deter this type of theft. You can call your credit card customer service to check your card and let them know you don’t want them to adopt this technology.

It’s scary, I know. We all are vulnerable, but we are an educated people and are not helpless. According to ehow.com, an extra tip to protecting the data stored on the RFID is to stack your credit cards together in your wallet. While it’s not completely fool-proof, it does make it more difficult for the thief’s scanner to read your data.

A convenient feature many credit card companies offer is allowing you to set limits on your account for purchases greater than $100. By doing this an automatic email or text alert gets generated flagging you of the activity. Also, make it a priority for regular routine checks on all credit or debit card activities. Remember, identity thieves usually make small inconspicuous charges at first so to not raise a red flag with your bank or even you. Be in control and don’t fall victim of an identity thief.

What ways do you safeguard your identity?