Kay Robinson: BBB Report

The Better Business Bureau warns consumers that even if their credit or debit card never leaves their sight, they could still become victims of fraud or identity theft. Consumers need to be prepared to act quickly to minimize the damage.

The 2008 Identity Fraud Survey Report from Javelin Strategy & Research says that fraud is declining in the United States - down 12 percent from 2006 - and that 8.1 million Americans were actually victims of identity fraud. However, the Identity Theft Resource Center says 127 million personal records were reported compromised in the country in 2007, a six-fold increase over the previous year.

"Stolen belongings continue to be the main source of personal identity fraud in the United States, but businesses continue to report alarming security breaches that expose millions of Americans' identities and financial information to would-be thieves," said Steve Cox, BBB spokesman. "Identity thieves are certainly stealing some wallets, but the bigger prizes are the massive customer databases with outdated encryption security that sit like pots of gold at the end of the cyberspace rainbow."

In late 2007, owners of the T.J. Maxx and Marshalls retail chains reported that tens of millions of credit and debit card owners were exposed to fraud when hackers stole data while it was being transmitted wirelessly. In January, the personal information - including 150,000 Social Security numbers - of more than 650,000 customers of JC Penney and other major U.S. retailers was compromised when a computer tape went missing from a data storage warehouse run by Iron Mountain Inc.

The BBB is encouraging consumers to become more savvy and to keep a close eye on their credit and debit card statements for suspicious activity. If they find their card has been stolen or if they have noticed fraudulent charges on their accounts, the bureau has some advice that will help consumers resolve the issue as quickly as possible:

Kay Robinson
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