Cyber fraud costs everyone
Being on the receiving end of fraud or a scam is frustrating, soul destroying and expensive.
Recently, a Debtfix Crew member had their credit card hacked, even though they had good antivirus software, and then an email turned up in their inbox about New Zealand’s Cyber Smart Week, 10-16 October.
Technology seemed to be watching their every move, but it was a good reminder to review cyber security and look for ways to prevent further hacks and potentially lost money.
What’s the big deal about cyber fraud?
At first glance, it may seem like little more than an inconvenience to have a credit card hacked but there’s a lot of underlying expenses that we all pay for. The Crew member was heading out of town the next day for a family holiday, and when the bank was appropriately notified of the security breach the credit card was immediately cancelled.
Full disclosure here. The Crew member pays off their credit card completely each month, which is a manageable debt.
The stopped credit card created a cash-only situation to pay for accommodation and other expenses, and if the Crew member didn’t have rainy day savings, the trip would have been cancelled. Prepaid bookings would have been lost and that would have been a big waste of money. Fortunately, the credit card on the Crew member’s smartphone was instantly updated and she could make mobile payments where payWave was accepted.
Next, the bank was onto the fraudulent hack quick smart and within a few days all transactions were reversed. Phew – what a relief. If they’ve delivered the meat order, outdoor clothing, and cheesecake, they will need to chase the fraudster or most likely, write off the cost.
Stolen goods cost us all, increasing the overall price retailers charge for those nicked puffer jackets as well as the premiums we pay for insurance. Our bank and credit card fees increase, to pay the wages and operational costs of the reassuring customer service person who took the phone call from our worried Crew member.
The process required:
cancelling the hacked card
issuing a new one
engaging the bank fraud team
alerting the techie people who try to make the system secure
They all need to be paid, and even if banks are making record profits – you and I are the ones coughing up the dollars to cover the cost. There’s no such thing as fraud that doesn’t cost someone somewhere.
Could you’re credit card get hacked?
Yes. And, your debit card can be hacked, too.
In February this year, tech journalist Peter Griffin reported on ITP Techblog that there’s a flourishing trade in stolen credit card details and it costs an average of NZ$28.17 to buy a stolen credit card.
"Payment cards from New Zealand are so expensive (compared to the NZ$15 world average) because the high living standard inside the country attracts fraudsters," explains Marijus Briedis, NordVPN's chief technology officer.
In our Crew member’s situation, the bank’s security system noticed something was wrong after a few unusual transactions that must have triggered a techie algorithm. It automatically sent them several text messages requesting authentication, which the Crew member did not give and stopped any further transactions.
Briedis says all banks should have this type of system and if yours doesn’t, “demand it or consider switching banks." Rest assured, your credit card fees, interest and late payment penalties will cover the rising costs of banks setting up such protection for you.
What can I do to prevent credit card fraud?
Don’t let anyone else use your credit card. The first thing the Crew member was asked by the bank customer service person was, “Has anyone else used your credit card?”
Advice from CertNZ for Cyber Smart Week 10-16 October:
Use decent passwords for all accounts
Make up complex phrases that are easy for you to remember but hard to hack, like CricketStartsSoon@10.
Use a password manager
There are numerous password managers, and using a good one gives your brain the freedom to only remember one password and let the manager do the rest. Just don’t use your internet browser password manager as this is too easily used by people who can access your computer or phone.
Use two factor authentication
Two factor authentication is when the account sends you a text or email when you log in. Our Crew member set this up when they suspected the credit card details were stolen from an online booking website. Log out of all devices when you do this to remove any cybercriminal who might be logged into one of your accounts.
Keep apps and computers up-to-date
Security settings on your computer and smart device are frequently updated to counter cyber hacks. If possible, change your settings so updates run automatically.
Keep it private
Change social media accounts to private settings so hackers can’t access information about you. Also, limit what you share online. Your personal information helps them build details to hijack your profile, crack your accounts and nick your credit card.
Report cyber fraud
Immediately contact your bank if you see fraudulent transactions on your credit card or bank statement.
If you, or someone you know, experiences an online security incident, report it to CERT NZ. They help New Zealanders protect and recover from online security threats and incidents.
If you think this is all over the top, when Debtfix publishes blogs about credit cards on its website, the views of the page skyrocket – most likely due to global hackers looking for credit card accounts.
Of course, the final way to stop credit card hacking and cybercrime, is for people to stop buying stolen cards and information. Probably a bit unrealistic but it’s no different from buying stolen tools at the pub or stealing a car for a joy ride. It all adds to our cost of living and makes someone’s day worse, especially when they are struggling to make ends meet.