Exposed: 4.2 Million Credit and Debit Accounts!

It's never cool to have your credit card records stolen. Take for example what happened to Kurt Cobain! Or, a new twist on credit record theft is medical record theft (a la Invasion of The Body Snatcher's). MainStreet wants to keep you and your records safe, so click on this link.

That bag full of groceries just cost you a lot more than you bargained for!

A little more than a year after an estimated 94 million credit and debit card records were stolen from TJX Companies (TJX) , owner of such chains as T.J. Maxx and Marshalls, a related security breakdown has consumers on alert again. This time some 4.2 million credit and debit card numbers were exposed in a Hannaford Bros. computer system breach (DEG).  The retailer owns and operates the Hannaford supermarket chains on the east coast, and Sweetbay stores in Florida.

The breach was reportedly detected on February 27, and is expected to be the cause of at least 1,800 cases of fraud. In a statement posted on his company's website, Ron Hodge, the Hannaford Bros. CEO, advised customers to “carefully review their credit and debit card statements over the past three months and to contact the issuing institution immediately in the event of any irregularity.”  The company has a customer assistance hotline, too.

Hannaford is also working with the credit and debit card issuers in attempts to protect anyone whose personal information may have been accessed. "All major card brands are accepted by the retailer and are impacted by the compromise,”  says Jay Hopkins, a spokesperson for Visa (V). “[We are] in the process of providing card issuers the compromised accounts so they can take steps to protect consumers through independent fraud monitoring and, if needed, reissuing cards."

If you think your card information may be at risk, because of Hannaford, or any other company, take action. “Any individuals who have been exposed need to close their accounts 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 Hopkins. Debit cards are a different story because the money is taken from an established account. According to Foley: “The bank could take the position that they were legitimate transactions at the time and then you may just have to eat the money that was lost.”

It is also important to realize new credit cards or loans may be opened with your old stolen information.  For this reason anyone at risk should consider putting a freeze on their credit.  According to the Federal Trade Commission (FTC), a freeze will “restrict access to your credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze.” And that's a great way to avoid being left in the cold by I.D. thieves.