Stolen Credit Card Numbers Now Worth 40 Cents Each

In the last decade, there has been a major increase in cybercrime, especially related to identity theft. Each year the total number of identity theft attempts increases by several percent, as does the total dollar amount stolen from identity theft. Criminals often take the stolen account information they acquire via means of phishing, database breaches and computer viruses and sell it online to other criminals that want to use that data to purchase goods with other people’s money online.

In the last year, there have been so many major breaches of stolen information that the prices of bank account information, credit card information and full identity information (social security number, name, address, city, state, zip, date of birth, account numbers) are available for just a few dollars. It’s a classic game of supply and demand. There’s so much stolen information available, that the price has fallen through the floor. A recent Internet Security Threat Report stated that between January and April of 2008, there were a total of 8 million people that had their private information compromised.

A stolen credit card number will now only net a criminal a total of 40 cents. Bank account numbers can be acquired for about $10.00, and someone’s credit card number and all associated contact information can be had for just $2.00. A couple of years ago, a credit card number alone could be sold for $10.00 and additional information could significantly increase the price.

With identity theft being rampant, consumers must take diligent and proactive steps to protect their identities. First, it makes sense to use www.annualcreditreport.com to get free copies of your credit reports to make sure that no one else has opened an account in your name. Most financial advisors will suggest that you check one of them every four months, that way you will be able to tell if someone has opened an account in your name sooner than you would otherwise.

Another proactive step that’s worth taking is freezing your credit. Essentially, your credit will be inaccessible to anyone who wants to look at it to approve you for a loan. It’ll be like your credit file does not exist, making your identity useless to any would be criminals. If you do want to make use of your credit to purchase a home, a car, or open a new credit card, you’ll need to unfreeze your credit. It’s a painless process that only takes a few minutes.

Finally, keep a close eye on all of your statements and look for charges that look suspicious. There are a lot of small-time instances of fraud that go unchecked because people don’t look at their statements carefully enough.