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Q&A: THE COST

Emi Endo

August 7, 2008

If one store is hacked, is the entire company system compromised?

It depends on how the system is set up, experts said. In some cases, hackers can get into the corporate servers, but other times they can only gain access to one store.

How vulnerable are consumers?

"Very vulnerable," said Avivah Litan, a security analyst for Gartner Inc., a research company in Stamford, Conn. Litan recommended that consumers use credit cards rather than debit cards that require using a PIN because of the risk that PINs stored in the merchants' computer systems could be stolen.

How vulnerable are people with wireless networks at home?

If you have an unsecured wireless network, neighbors or hackers could piggyback on the network or access information on your computer. Also, any crime or spam sent through your network by an unauthorized person can be traced back to you. The Bureau of Consumer Protection of the Federal Trade Commission recommends these steps to secure your network: use encryption, anti-virus and anti-spyware software, a firewall and change the default settings on your router.

How do consumers know if their information was compromised?

The Bureau of Consumer Protection says signs of identity theft include:

Missing bills (a thief could have changed the billing address for your account)

Receiving information about credit cards you didn't apply for, accounts you didn't open, or purchases you didn't make.

Being denied credit

Wrong information on your credit reports

What can consumers do if they suspect unauthorized activity on their accounts?

Monitor financial statements and credit reports regularly, keeping an eye open for signs of identity theft.

If your information has been compromised, place a fraud alert on your credit reports, consider filing a complaint with the FTC and accepting any offer of free credit monitoring from a company that has had a breach.

What is the consumer's exposure in ID theft cases?

For lost or stolen credit cards, federal law limits liability to $50 for unauthorized charges.

For lost or stolen ATM or debit cards, federal law limits liability to $50 if the loss is reported within two business days of discovering the loss of the card. If the loss is reported within 60 days, liability is $500. After that, liability could be unlimited, according to the state attorney general's office.