Data Breaches Affect Your Credit Rating

Using your credit card online is one of the ways in which your credit card can be breached

. This may happen in the innocent exchange between you (the consumer) and the internet store of choice. Some online stores may be easily invaded by hackers or may be fraudulent themselves. Hence, you must always be careful when choosing online sources for buying items.

It is also possible that a breach may occur via the actual credit card institution. There are some hackers with very sophisticated technologies that allow them to enter large secured databases and retrieve credit card information and other bits of personal information that they will use to manipulate the accounts of many unsuspecting credit card users.

The possibility of identity theft

Once you have been breached, you may not realize immediately until your monthly credit card statement displays evidence of rampant spending that you had no hand in whatsoever. However, what is worst is that you may become the victim of identity theft. This means that these criminals may use all your personal information to open credit card accounts that you may be unaware of.

Identity theft hurts your credit

Sadly many people who are victims of this horrible practice may find that their credit scores have lowered significantly barring them from the ability to access more credit. Your overall credit rating will be affected if you do not identify what is happening early enough. It is inevitable that your credit rating will be reduced because these scam artists will not honour the accounts that they create but will generate a large debt in a short period of time from non payment. It is undoubtedly a shocking experience to realize that your credit rating has reached near rock bottom especially when you have been effectively managing your credit, at least the portion that you legitimately established.

Recovering from identity theft

However, it is important that you take steps once you realize a breach has occurred. These steps may include:

*Obtaining a copy of your credit report immediately

*Informing the credit bureaus and placing a fraud alert on your credit reports

*Filing a police report

*File an ID Theft complaint with the Federal Trade Commission

*Put a security freeze on your credit reports

*Contact the credit card companies that were fraudulently opened, telling them of the dilemma

*Explaining to debt collectors that you have been the victim of identity theft

A breach is unequivocally the worst form of invasion of privacy as it has the ability to ruin your financial stability and credit rating. Take care when shopping online and do everything you can to protect your personal information.

by: Cheryl Graves

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