How to Protect Yourself from Hacker Data Scams

It looks like the largest hacking case in history is cracked. Eleven suspects were indicted in Boston on Tuesday, accused of hacking into the wireless computer networks of major retail chains like TJX (TJX), OfficeMax (OMX), Boston Market, Sports Authority (GSIC), Forever 21, BJ’s Wholesale Club (BJ) and DSW (DSW)  and stealing passwords, credit cards numbers and personal account information.

“This is the single largest and most complex identity theft case ever charged in this country," Attorney General Michael B. Mukasey said at a news conference.

The Justice Department may have nabbed this round of crooks, but identity theft is an ongoing threat to Americans' financial security. According to a survey by Javelin Strategy & Research, identity theft cost consumers and businesses some $49.3 billion in 2006. 
If you ever think your personal information is compromised, immediately close your account and get new cards, says Jay Foley, founder of Identity Theft Resource Center in San Diego, Calif.  He says credit card consumers can contact the issuer to have the card canceled.

However, anyone who used a debit card may have to cancel more than one account.  “If your debit card is attached to a checking account which is also linked to a savings account you will have to go to the bank and close both and set up new accounts," says Foley. "And make sure that there is no link between the old accounts and the new one.” 

Whether you use a debit or credit card can also makes a big difference when it comes time to attempt to recover from identity theft.  Credit card companies often reimburse clients for charges made on a credit card that is reported to have had fraudulent activity. “It is important for U.S. Visa consumer cardholders to know that they are protected against fraudulent purchases," says Jay Hopkins, a spokesperson for Visa (V).