NEW YORK (MainStreet) So you got an email, text or phone call from your bank or credit card provider that includes the words "data breach."
If those words don't make the hair on the back of your neck stand up, they should. Once you hear the term, there is a good chance the words you hear next will be "identity theft."
So says a report from Javelin Research, which estimates that a quarter of all data breaches related to credit and debit cards lead directly to I.D. theft.
That means that of 16 million Americans warned that their credit or debit card had been compromised, about 4.4 million wound up losing money and fighting the ghosts that come part and parcel with ID theft.
That's no mere inconvenience. Javelin says U.S consumers lost $21 billion to identity theft last year, and it cost them up to 37 hours to fix the problem.In addition:
- 1.26 million Americans notified of a data breach involving their Social Security numbers were victimized by identity fraud.
- 270,000 Americans notified by a data breach on their online banking accounts saw fraudulent activity on their checking and savings accounts.
- 324,000 Americans contacted over a data breach involving their regular checking accounts were victimized by checking and/or savings account fraud.
"By breaching the data stores of businesses in the financial, health care and retail industries, criminals can obtain the fuel they need to execute various fraud schemes, and these crimes have crippling consequences," says Al Pascual, a senior analyst at Javelin.
If you're warned of a data breach involving your payment card, Social Security number or bank account, take immediate action. Contact any one of the three major consumer credit bureaus, TransUnion, Experian or Equifax