If you shopped at a Target retail store in the US between November 27 and December 15, 2013 using your credit or debit card then you should demand a new card from your bank no matter what excuse your bank gives. Here are the simple reasons why.
Your card is already for sale in underground markets. Even if you haven’t seen any activity on your card at this point that does not mean your card isn’t for sale or already purchased.
Banks have been telling cardholders that they shouldn’t worry because the consumer will not be liable for fraudulent purchases. But that requires the bank or you to detect the fraud to begin with. The cards that were stolen were supplied with the state that they were used in to help avoid tripping automatic fraud detection on out of state purchases. That means it’s probably up to each person to watch for fraud.
Next when your card is used fraudulently there is a cumbersome process to go through to get the charges reversed. First you have to file a police report, then file a report with your card issuer. The issuer then looks at the report and decides if they believe you. Just because someone says something is fraud doesn’t mean the banks have to reverse the charges. If they suspect that people are trying to falsely claim fraud they’ll deny the claim. Then you’re stuck with the charge.
Target has also offered free credit monitoring. This is a useless and empty gesture. Credit monitoring monitors the credit agencies like Experian, Transunion and Equifax. Those companies do not look for fraudulent charges on your card, they look for new accounts being opened in your name. What was stolen was the magnetic stripe information which includes your name, card number and expiration date. Those things are used to make fraudulent purchases, not to open new accounts. Though combined with other information that might be available on you they might help a thief out, they are not going to allow them to open new cards in your name. So credit monitoring is the wrong solution to the problem.
Banks don’t want to re-issue 40 million cards because that would cost them a lot of money. But it’s what they should do and it’s what you should demand for your own card.
