Identity Theft: How Safe Are You?

LOS ANGELES -- The credit card companies love a new technology...called "radio frequency identification" also known as RFID. Instead of swiping your card, all you have to do is hold it up to a credit cart reader and...you're out the door.

Sounds easy, and it may be. But could it also make the crime of stealing your identity easy?

Florida businessman Walt Augustinowicz founder of Identity Stronghold, an identity protection company. He says it could be simple for a thief to use this new technology to steal some of your personal information.

"I bought a credit card reader for $9 dollars on Ebay. I hooked it up to my computer, scanned my own cards, and there was all of my information on the screen," Augustinowicz said."

You don't even have to have your card out in the open. It could be in your wallet in your back pocket and all it takes is for a thief to walk up behind you with a card reader and scan within 5 inches of your wallet or purse and he or she could have access to your credit card number.

It's not just your credit card number in jeopardy. Some drivers licenses, passports, and ID cards also have RFID technology.

One scan, and a thief could be able to get his hands on your name, address, your social security number and your credit card number. Augustinowicz added, "Mastercard and Visa want you to use these new cards!"

KTLA put together a group of about 10 random business people who volunteered to test their vulnerability. Augustinowicz' goal was to show the volunteers how easy it is for someone with no technology experience to steal someone's information in public.

When the *very first* volunteer walked up to see if any of her cards could be detected, her card number was scanned with a 9-dollar reader that *anyone* can buy off the Internet.

After the beep, a computer screen showed Sapna Sood's card number and expiration date...and she didn't even know her card had the new technology. "Pretty scary, this is really scary" Sood said. "What can you do? Rather than be scared I think the important thing to do is protect yourself."

As for the rest of the volunteers, even though their cards were not readable, this was still an eye-opening experience.

Just ask 2-time identity theft victim Juan Torres. "We thought they (identity thieves) needed access to your checking account and other papers, but this is scary. This is unbelievable," Torres said.

How can you tell if your card is loaded with an RFID chip? Look for a symbol that resembles a radio wave. Also, look for words like "pay pass", "express pay", or "zip".

If you find out your card has the technology, don't panic. The same guy who told us how easy it can be to steal, has invented a way to protect yourself. It's a simple sleeve not much bigger than a credit card made of tyvek that blocks all radio signals. If you want to use the card, just take it out of the protective sleeve.

"I didn't start this business to make money. When I learned of the risk, some people encouraged me to develop a way to protect myself and I went from there" Augustinowicz said.

You can buy a pack of 5 secure sleeves for under $20 bucks online. But the credit card companies don't really acknowledge any risk involved with RFID technology.

If a crook ends up with your credit card number and expiration date, Mastercard says quote,"(you) can't make an Internet or phone purchase, since the merchant should ask for the 3-digit code on the back, or zip code verification - to complete the purchase."

Odds are, your credit card is not armed with the new technology today. 5% of all credit cards in circulation have RFID chips in them. However, over the next 3 years, the goal is to have every credit card equipped with contactless technology.

One way of protecting yourself: http://www.idstronghold.com/




This article was taken from: ktla