Action News Investigates: Fighting Consumer Fraud in 2015

Almost half of the world’s credit card fraud happens in the United States. Experts tell Action News it’s the type of card that’s in your wallet right now that is most at risk.

Action News investigated the new technology on the way to keep your credit safe and the surprising group of people who are most at risk.

Target, Michaels, Sally Beauty Supply, Home Depot and Jimmy John's are all companies that have been targeted by hackers, exposing millions of us to fraud and identity theft.

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According to the Federal Trade Commission, Florida leads the country in reported fraud complaints. Statistics show most of the fraud being reported is related to government documents, like tax returns. However, experts tell Action News, credit card fraud, which often isn’t reported to the FTC, is far worse.

Florida resident MaryAnn Tulimieli had her credit card information stolen. She said, “I try not to use my credit card that much because it got compromised twice.”

Crooks target the most vulnerable part of your card, the magnetic stripe. The magnetic stripes store data that doesn’t change, so if your card is hacked the bad guys have all the sensitive information they need to make purchases or counterfeit your cards.

New Technology

This year, shoppers will have access to technology, that’s been used in Europe for years, aimed at making it harder to hack your accounts. Most newly issued cards will have a small, embedded microchip. The chip creates a unique transaction code every time you make a purchase. The code can’t be used again, making it nearly impossible for criminals to duplicate your information. Most credit card companies, businesses and banks are expected to move into chip card technology by October of this year.

Apple Pay is another new option that’s becoming available to shoppers. Similar to chip enabled cards, it creates a unique codes for each transaction and does not store or transmit any sensitive information from your credit card.

Targets for Credit Card Hacking

Action News traveled more than 500 miles to talk to a national expert on consumer fraud and identity theft. Carol Frederick is the Florida Department of Law Enforcement’s Resident Agent in Charge for the Key West Region. She also travels around the country teaching cops how crooks operate and how to stop them.

“Cops and Robbers 101, that is how our game is played and every time a new technology comes out someone's interested in compromising it," Frederick said.

Think you know who the likely targets are for credit card hacking? Agent Frederick tells Action News even some officers get the answer wrong.

“Every class without exception that I teach across the country, when I ask what age group is most victimized give me a 10-year range they say seniors,” said Frederick.

The most hacked group is actually people 18 to 40 years old. Frederick says that’s the group that spends money and surfs online more than anyone else, which means the real seniors who need to learn how to protect themselves are seniors in high school.

"Password protect your phone, password protect your computer. I want you to look at SecureFlorida.org or the attorney general's website." Frederick added.

While technology and education will go a long way to slowing criminals down, nothing is foolproof. Credit card crooks will always be looking for new ways to get between you and your money.