What to Expect When Your Credit Card is Compromised

You have probably seen the past headlines. 

“94 million Cardholders Affected By Compromise of Credit Card Information.”

“40 Million Credit Card Records Accessed by Hackers in Breach of Merchant Systems.”

“Retailer Settles Claims Related to Breach of Customer Card Data.”

With the number of computer hackers working daily to access consumer data, it may be difficult to escape being part of a credit or debit card compromise.  When it happens, how are you affected and what can you expect?

What Is a Card Compromise?

A card compromise happens when criminals gain unauthorized access to payment card data at a merchant or retailer.

When a card was compromised, the breach occurred at a business that accepts card payments. Hackers target merchant payment systems, not banks or credit unions, allowing them access to customers’ payment information. 

• Stolen card details may be:
  • Used directly for fraud
  • Sold to others for fraudulent purchases

If your credit or debit card information is involved:

• Card networks (Visa, Mastercard, American Express, etc.) notify card issuers.
• Your bank or credit union contacts you with next steps.
• The card issuer’s systems were not hacked, just the payment system where the card was used. 

Why Does A Card Compromise Matter?

Although hackers may view this as harmless, it affects everyone:

• Merchants suffer reputational damage and financial loss.
• Card networks and issuers incur costs to protect customers.
• Consumers deal with inconvenience and disruption.

How Does A Card Compromise Affect Me?

If your credit card compromised status leads to fraudulent charges:

• You have zero liability, provided you:
  • Report fraud promptly
  • Take reasonable care to protect your card

How do card issuers respond to these compromises?

1. Monitor-Only Approach

• You’re asked to watch your account closely for suspicious activity.
• This requires daily monitoring for weeks or months.
• Many cardholders choose to request a replacement instead.

2. Automatic Card Replacement

• Your current card is canceled.
• A new card and PIN are issued.
• You’ll need to update:
  • Automatic payments
  • Saved card details on websites and apps

3. Temporary Restrictions

• If fraud patterns are already known:
  • Signature-based transactions may be limited
  • PIN transactions may still work until replacement arrives

What should I do if my card is compromised?

If you believe your card information may be at risk, contact your card issuer immediately to confirm the activity and discuss next steps. Follow their guidance closely, which may include monitoring transactions, canceling the affected card, or receiving a replacement. Be sure to review recent account activity, report any unfamiliar charges right away, and update payment information on any recurring bills or online accounts once a new card is issued. Acting promptly helps limit inconvenience and reduces the chance of further fraud.

“At Genisys, our stance is to re-issue cards compromised in a data breach,” says Michelle Mattson, Vice President of Remote Delivery Channels for Genisys Credit Union.  “Make no mistake; each merchant hack is done with malicious intent.  We take actions that will cause the least hassle to our members in the end.  We do everything possible to communicate quickly with members affected by a merchant breach and act to maintain as much continuity of card use as possible for our members.” 

“We also have a responsibility to all of our credit union member-owners to limit the costs associated with the reimbursement of fraudulent transactions as much as possible,” added Mattson.

What can you do to protect yourself?

You may be tempted to stop using debit cards and credit cards altogether.  However, with zero liability, credit and debit cards are still more secure than paying with cash or checks.

The best action for controlling the use of your cards is to download the CardNav app.  This app gives you the power to turn your card off when you aren’t using it, and on when you need to perform a transaction.  If notified that your card has been included in a breach, this can be an additional way to protect your card from fraudulent transactions until you receive your new plastic.

Read those important notifications.

Whether you receive notice by email or snail mail, it is important to read any notifications sent to you regarding your debit and credit cards.  Knowing the actions of your card issuer will help you understand your protection from the potential hassle of fraudulent transactions on your account and any actions you should take.

 

© Genisys Credit Union and www.genisyscu.org, 2017.  Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited.  Excerpts and links may be used, provided that full and clear credit is given to Genisys Credit Union and www.genisyscu.org with appropriate and specific direction to the original content.

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