Data breaches and credit card fraud are becoming common occurrences. Yesterday's revelation that hackers stole credit card information from 63 Barnes & Noble stores is just the latest reminder.

Credit card fraud is not just isolated to the United States. A new global study by ACI Worldwide and Aite Group shows that one in four respondents have been a victim of credit, debit or prepaid card fraud during the past five years. Residents of Mexico and the United States have the highest percentage of direct experience with card fraud, at 44 and 42 percent respectively.

The study, conducted with more than 5,200 consumers across 17 countries, showed credit card usage declines after someone has been a victim of credit fraud. Cardholders who received replacement cards used the new card 46 percent less than the original card. More than 50 percent of victims used cash or another form of payment instead of a credit or debit card.

The survey also found that despite their experiences and concerns, many victims of fraud continue behaviors that put them at higher risk of financial fraud. They throw documents containing sensitive information into the trash without shredding them. They keep written records of PIN numbers. Some continue to provide personal information on public computers or
computers without security software.

There is little you can do to prevent a hack attack at your bank or retailer. But you can take steps to protect your cards, bank accounts and personal information from thieves.

• Sign your cards as soon as you get them.
• Keep an eye on your card during the payment process.
• Keep receipts and compare them with your billing statements.
• Look at your account statements often. Immediately report questionable charges to the credit card issuer.
• If you feel your information has been compromised, contact all three credit bureaus to put a freeze on your credit report to prevent your accounts from being opened without your knowledge. This may cost about $10 each.
• Do not leave cards or receipts lying around.
• If you use a wireless router, password protect it and enable the encryption to scramble the data you send online.
• Change your passwords from time to time.
• Don't give out your account number over the phone unless you made the call and you know the company. Don't email your credit card number to anyone.
• Don't lend your card to anyone.
• Ask your bank if it has free software to protect your bank account. For example, Bank of America offers Trusteer Rapport for its online banking customers.

Credit Card Settlement Could Stymie PayPal's Retail Plans
A provision within the hotly-contested settlement between merchants and credit card networks could potentially slow PayPal's bid to become more widely accepted at grocery stores, restaurants and other retailers. Retailers that choose to add a surcharge to customers that pay with plastic must add the surcharge on all types of electronic payments--including PayPal, which currently prohibits merchants from surcharging its clients. If nothing changes, retailers would have little choice but to shut PayPal out, attorneys for retailers say.  PayPal has plans to expand through a partnership with Discover that would let consumers use PayPal at roughly seven million U.S. merchants where Discover is accepted. Story by Sean Sposito for the American Banker.

Protecting Credit Cards and Bank Accounts from Hackers
Data breaches and credit card fraud are becoming common occurrences. This week's revelation that hackers stole credit card information from 63 Barnes & Noble stores is just the latest reminder. Credit card fraud is not just isolated to the United States. A new global study by ACI Worldwide and Aite Group shows that one in four respondents have been a victim of credit, debit or prepaid card fraud during the past five years. Residents of Mexico and the United States have the highest percentage of direct experience with card fraud, at 44 and 42 percent respectively. The study, conducted with more than 5,200 consumers across 17 countries, showed credit card usage declines after someone has been a victim of credit fraud. Cardholders who received replacement cards used the new card 46 percent less than the original card. More than 50 percent of victims used cash or another form of payment instead of a credit or debit card. Story by Bill Hardekopf for LowCards.com.

New Federal Rules for Debt Collectors
Debt collection agencies will come under federal supervision when the Consumer Financial Protection Bureau begins oversight on January 2. The CFPB will begin monitoring debt collectors that contract with the Education Department to collect overdue student loans. The consumer agency will examine companies to ensure they properly identify themselves to consumers and properly disclose the amount of debt owed. In addition, collectors must have a process to resolve disputes and communicate "civilly and honestly" with consumers. Story by Edward Wyatt for the New York Times.

Target Sells U.S. Credit Card Portfolio to TD Bank
Canada's Toronto-Dominion Bank said it has agreed to buy the $5.9-billion credit card portfolio of retailing giant Target,  a deal that significantly expands the Canadian lender's push south of the border. TD Bank will become the exclusive issuer of Target-branded Visa and private-label consumer credit cards to Target's U.S. customers. The bank has been on the prowl for U.S. assets, amid worry in Canada that the domestic banking market is headed for slower growth. Canadian banks--which survived the global financial and economic crisis relatively unscathed and with a comfortable cushion of capital—have been venturing south. Story by Caroline Van Hassalt for the Wall Street Journal.

Another Advancement for Mobile Payments
After months of delays, mobile payment took another step forward this week with the launch of the Isis system in Salt Lake City and Austin. Isis allows consumers to make payments with their smartphone by waving it at a check-out terminal. Wireless carriers are testing the Isis Mobile Wallet and attempting to ignite the adoption of mobile payment systems that have been slow to find success in the United States. The tests in Austin and Salt Lake City are starting small: 500 retailers can accept Isis in Salt Lake City and 470 in Austin. According to Computerworld, there are approximately 200,000 of the newer point-of-sale terminals that accept mobile payments in place in the United States, a very small percentage of retail stores. That number could grow significantly over the next three years as retailers could pay a penalty if they don't upgrade to point-of-sale terminals with better security by October 2015. Story by John Oldshue for LowCards.com.

Creeping Theater Thief Costs Moviegoers Tens of Thousands in Credit Card Fraud
A man who may have stolen as much as $70,000 a week by slithering beneath theater seats while movies were playing and lifting credit cards from women's' pocketbooks was convicted Monday of fraud and identity theft crimes. Anthony Johnson, 49, used the stolen cards to collect thousands of dollars in cash advances from Connecticut's gambling casinos and to make tens of thousands of dollars more in retail purchases. On a "good" weekend, Johnson collected $50,000 to $70,000 from the scheme. He had to settle for $30,000 or $40,000 on a bad weekend, an accomplice said. Story by Edmund Mahony for the Hartford Courant.

Visa Swipes Boss from J.P. Morgan
Visa named J.P. Morgan Chase executive Charles Scharf its next chief executive Wednesday. Scharf, a former Visa board member, ran the retail bank at J.P. Morgan for several years before being moved to the bank's private-equity unit in 2011. He had once been considered a possible successor to J.P. Morgan CEO James Dimon. Story by Robin Sidel for the Wall Street Journal.

Canada Clamps Down on Prepaid Credit
Canada's federal finance minister announced Wednesday that prepaid credit cards can no longer expire and must openly disclose all fees and conditions. Prepaid credit cards are relatively new to Canada, but now need to be as transparent as other financial tools. Story by United Press International.

LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.26 percent, slightly below last week's average of 14.28 percent. Six months ago, the average was 14.27 percent. One year ago, the average was 14.16 percent.

The U.S. Justice Department announced charges against 18 people who bilked financial institutions out of at least $200 million in an international credit card fraud scheme. This would be one of the biggest credit card scams ever broken up by the U.S. Justice Department.

Charges were filed in U.S. District Court in Newark. The fraud occurred in at least 28 states and eight countries. Court papers say that millions of dollars were wired to India, Pakistan, Canada, Romania, China, Japan and the United Arab Emirates.

Authorities believe the scam started ten years ago. The ring used 1,800 different addresses to create thousands of false identities. The thieves sent fictitious reports to credit agencies which persuaded the agencies to give the fictitious people excellent credit scores. They used these identities and scores to obtain 25,000 credit cards.

The scammers started out with small purchases over an extended time. The excellent credit scores gave the thieves higher credit limits to run up large loans that they never repaid.

They also set up at least 80 false companies that did little or no legitimate business. They allegedly set up terminals that rang up false charges, using the money to buy electronics, spa treatment, luxury automobiles and gold. Millions of dollars were wired overseas.

Prosecutors said Muhammad Shafiq and Babar Qureshi, of Iselin, N.J., were the ringleaders. The defendants are scheduled to appear this afternoon in a Newark federal court.

Educational initiatives on the U.S. transition to secure chip-based credit card payment systems was one of the top priorities for 2013 to come out of the 6th annual Smart Card Alliance Payments Summit, held recently in Salt Lake City, Utah.

Education on chip-based card payments was also a major priority for the Smart Card Alliance Payments Council in 2012, when all of the major U.S. payment brands announced roadmaps to the European model in which financial institutions replaced using electronic strips on credit cards with a microchip technology called EMV.

EMV stands for EuroPay, MasterCard and Visa, the three companies that have driven the switch to microchip-enabled credit and debit cards in Europe and the United Kingdom. European banks no longer use magnetic strips, a technology that is a half-century old. Instead, microchips embedded in the cards communicate with the ATM to identify customers.

Already implemented in more than 80 countries, EMV reduces counterfeit card fraud, promotes payments interoperability, and paves the way for mobile payments and secure e-commerce. The Payments Council's efforts have focused around ensuring that merchants, issuers, acquirers/processors, government regulators, consumers and payment service providers have all of the educational resources they need to successfully migrate to this new way to pay.

Last year, the Payments Council launched a website, EMV Connection.com, that provides up-to-date information on efforts to bring the technology to the United States, along with tutorials and educational materials.

"The Payments Council has been at the forefront of this very exciting time in the U.S. payments industry. As we move to a new payments infrastructure that enables EMV and NFC mobile payments, we will strive to make the Payments Council the go-to resource for guidance and educational materials to ensure a seamless migration," said Jack Jania, new co-chair of the Payments Council.

The Payments Council has been instrumental in educating industry stakeholders on the value that EMV brings to payments, according to Oliver Manahan, MasterCard Worldwide and new co-chair of the Payments Council.

"The Payments Council will continue to work with all stakeholders--including merchants, acquirers, issuers, processors and consumers--to help identify the steps necessary to fully realize the potential of this technology, not only with card payments but with mobile and e-commerce as well," Manahan said.

Each time an EMV card is swiped, it produces a "unique transaction identifier," a security code for that particular transaction. Unlike magnetic strip system in the United States, if someone steals an account number of an EMV card, they can’t use it because they need the security code the chip produces.

Though U.S. banks are great at catching fraud after the fact by tracking card usage, the rising cost of ATM theft is driving American banks toward updating to microchips. Aite Group, a consultant for the financial services industry, estimates the average amount skimmed per ATM is now around $50,000.

Some U.S. banks are launching pilot programs using EMV-updated systems. Wells Fargo has issued EMV-enabled cards (also bearing magnetic strips) to 15,000 of their customers so they can use their cards overseas.

Researchers, trade groups and banks agree, acknowledging that implementing EMV in the United States will be difficult since it requires coordination between banks and merchants, who have had hostile relationships in recent years. In addition, it can be costly.

But security experts say sticking with magnetic strips carries costs as well because it is preventable and uses outdated technology.

Ever notice $10 to $50 missing from your available credit balance without a clue as to why? If so, you may be a victim of "cramming," a new type of credit card fraud.

Cramming involves the use of unauthorized small charges over a long stretch of time, most of which go unnoticed. The Federal Trade Commission predicts that such fraud has led to more than $24 million in stolen funds to date.

Most of the cardholders who discovered this problem were closely monitoring their bills at the time. A large portion of them had recently filed for a payday loan before noticing the issue.

This problem is similar to another form of cramming discovered by the FTC, which occurred on phone bills across the country. Rather than charging $20 or $30 on the bill, companies were only adding $2 to $3. Those numbers are much more proportional to the average user's bill. The FTC has encouraged consumers to pay close attention to fluctuations like these in their phone bills, and they are now doing the same for credit cards.

What can you do to avoid being crammed? Follow the tips below:

• Keep a log of your purchases every month, like you would with a checkbook for your bank account.
• Understand each of the fees on your credit card statements, and ask about any that look questionable.
• Review your card statements regularly and cross reference those charges with the ones from your log.
• Keep your outstanding balances low.
• Report any unauthorized charges right away to avoid them in the future.

As long as you are aware of what is going on with your credit cards, you should be able to correct any cramming that may arise.

Credit card fraud has unfortunately become an every day occurrence, not just in this country but around the world.

A 2012 global study by ACI Worldwide and Aite Group shows that one in four respondents have been a victim of credit, debit or prepaid card fraud during the past five years.

It can happen when thieves dive into a dumpster to pull your card information from the trash or steal mail from your mailbox. It can be a dishonest clerk jotting down your personal card information. Or it can occur when a high-tech fraudster hacks into your personal information from the Web.

But there are some steps you can take to protect yourself from theft of your credit card information. Some of these tips are provided by the Federal Trade Commission:

• Treat your credit cards like cash, carefully guarding your personal information. Don't trust anyone that you don't know. Only give your account number to people on the phone if you know the firm to be reputable.
• Keep a record of your account numbers, their expiration dates and the phone number to report fraud for each company in a secure place.
• Don't lend your card to anyone--even your children or roommates.
• Don't leave your cards, receipts, or statements around your home or office.
• When you no longer need the receipts, shred them before throwing them away.
• If you've never done business with a merchant before, do an online search first for reviews or complaints.
• Carry your cards separately from your wallet. It can minimize your losses if someone steals your wallet or purse. And carry only the card you need for that outing.
• During a transaction, keep your eye on your card. Make sure you get it back before you walk away.
• When signing a receipt, draw a line through any blank spaces above the total.
• Save your receipts to compare with your account statement.
• Open your bills promptly--or check them online often--and reconcile them with the purchases you have made.
• Report any questionable charges to the card issuer.
• Change your passwords from time to time.
• Don't give out your account number over the phone unless you made the call and you know the company. Don't email your credit card number to anyone.
• If you feel your information has been compromised, contact all three credit bureaus to put a freeze on your credit report to prevent your accounts from being opened without your knowledge.
• Notify your card issuer if your address changes or if you will be traveling.
• Don't write your account number on the outside of an envelope.

No one is immune to credit card fraud--not even the Chief Justice of the Supreme Court. John Roberts was seen paying for coffee in cash at a local Starbucks because he had to cancel his credit cards. A member of The Huffington Post also overheard Roberts at a barber shop explaining the situation to someone else in the shop. Roberts suggested that the theft was being traced back to Kentucky.

This case of credit card theft is probably being more heavily tracked than most, but it proves that no one is safe from fraudulent behavior. Roberts corrected his problem right away, protecting himself and his money at the same time.

Here are some steps you can take if you ever fall victim to credit card fraud:

• Keep an accurate log of your credit card charges, and compare their totals against your credit card's available balance.
• If your available balance seems low, check the list of charges against the ones on the card and note any that seem out of place.
• Report any issues you have with your card immediately after you notice them. Most credit card companies will reverse the charges so you do not have to pay for them.
• Cancel the card that you are having issues with, and have the credit card company send you out a new card to use.
• Keep some cash or money in your bank account as backup, in case this ever happens again. You might have to use that extra money while you wait for your new card to arrive.

Hopefully you never end up in Roberts' situation, but it can't hurt to be prepared for it. Monitor your accounts closely, and you will be able to catch a problem as soon as it arises.

Do you have a credit card sitting in your wallet that you do not use anymore? Most of us keep these around for emergencies, spending sprees or we are just too lazy to cancel the card. You need to be aware of how vulnerable those credit cards could be.

Some credit card scammers are starting to target dormant credit cards, and they're stealing thousands of dollars along the way.

Word of this credit card fraud spread when a woman was arrested for using old credit cards she knew her company no longer monitored. The woman compromised over 30 accounts during her time with the company, and stole upwards of a half million dollars. No one noticed this taking place.

"She knew that these were dormant accounts which the businesses had lost track of, so she would go in manipulate the account," said U.S. Postal Inspector Mona Hernandez.

How often do you check your dormant credit card accounts? It may be in your best interest to review these accounts every month, even if you know you haven't made a recent transaction with that card. If you are worried about theft like this, consider canceling your cards altogether. For a short time, this may have a negative impact on your credit score.

Rakuten.com, formerly Buy.com, is a well-known Asian retail site with thousands of daily users. A site with this kind of retail traffic is a prime target for hackers.

According to news reports, there have been eight confirmed cases of credit card fraud associated with Rakuten, totaling $10,000 in charges. This could only be the beginning.

Another 250+ Rakuten customers have complained about unauthorized charges on their cards via the popular forum SlickDeals.net. These cases have not been investigated by police, and Rakuten itself says it is unaware of such issues happening on a wide scale. Nevertheless, Rakuten has teamed up with SlickDeals to provide information for those who claim to be victims, showing them how they can go about reversing the charges and avoiding the charges in the future.

According to a statement from detective sergeant Jonathan Misskerg of New York City, "The victims’ names, Social Security numbers, dates of birth and credit card information were used to open accounts at online equipment suppliers. The purchases, made at five online stores, included gas valves and warehouse time clocks and totaled around $10,000."

If you are a Rakuten customer who feels that you have experienced credit card fraud recently, contact your credit card company to dispute the charges. You may also join the discussions on SlickDeals or contact Rakuten to see what else you can do. Keep an eye on your accounts at all times to avoid serious problems in the future.

The leader of a $200 million credit card fraud ring that was busted earlier this year has now plead guilty to his actions. This case is one of the largest instances of fraud ever prosecuted by the Department of Justice, taking down at least 22 men and women in the United States alone.

Tahir Lodhi of Hicksville, New York, has admitted to playing a leading role in the scheme. He now has to accept his punishment.

Lodhi appeared before the U.S. District Judge in Trenton, where he was sentenced to a maximum of 30 years in prison, as well as a $1 million fine. Lodhi's lawyer is suggesting that he was nothing close to a leader in the operation, and he is requesting a time-served sentence for his client. The attorney, Howard Simmons, says that Lodhi is not a U.S. citizen and that his home country is Pakistan.

People across three different countries have been arrested as part of the ring, and authorities expect to make more arrests in the future.

The fraud ring involved over 7,000 fake identities, as well as 1,800 fake mailing addresses and 25,000 fraudulent credit cards. All of these were used to boost credit lines and take out large loans that were never repaid.

"One of the world's major facilitation networks for online card fraud has been dismantled by this operation, and those engaged in this type of crime should know that they are neither anonymous, nor beyond the reach of law enforcement agencies," said Andy Archibald of the National Cyber Crime Unit.

New Ruling on Credit Card Regulations Could Mean Big Changes at the Cash Register in Canada
A ruling expected this week on a complaint against Visa and MasterCard could significantly change how consumers use credit cards in Canada. Striking down the rules could allow merchants to either reject certain cards that offer incentive points, or charge consumers more for using them. Story by Terry Pedwell for the Canadian Press.

Visa and MasterCard Seek Ban on Credit Card Signatures in Australia
In a bid to reduce millions of dollars of credit card fraud, Visa and MasterCard want 90 per cent of in-store credit card sales verified by a personal identification number by June 30, 2014. The ease of forging a signature and the sales staff failing to double-check signatures are cited as reasons for high fraud rates. The move will affect consumers who prefer the traditional signature method. Story by Lucy Battersby for WAtoday.com.

Targeted Firm Files Suit as CFPB Wraps Up Probe
Morgan Drexen Inc., a company that provides back-office support to debt relief lawyers, has filed suit against the CFPB in federal court. The lawsuit states that the CFPB has been scrutinizing Morgan Drexen's business and its relationships with law firms that help consumers settle their debts. The lawsuit alleges that the CFPB not only lacks the authority to oversee law firms but also its very existence is unconstitutional because it lacks checks and balances such as funding from Congress. Story by Alan Zibel for the Wall Street Journal.

MaskMe Hides Your Phone, Credit Cards Online Behind Working Replacements
A new service called MaskMe lets you create new logins, credit cards and phone numbers that act as proxies for your own information. If they get compromised, you simply erase them.  You just remember a single master passphrase and it does the rest. Email will be forwarded to your real address, and if you start getting spammed or suffer a security breach, a click means that email address no longer exists. Story by Devin Coldewey for NBC News.

The CFPB's Accomplishments in its First Two Years
The Consumer Financial Protection Bureau is celebrating its two-year anniversary with much calmer waters ahead. The CFPB has been the center of political firestorms ever since it was originally formed. Republicans first opposed Elizabeth Warren as the head of the agency. Then, they demanded changes such as subjecting the agency to congressional budget appropriations as well as wanting the Bureau to be run by a five-person commission rather than one director. But last week, Richard Cordray was finally approved as the CFPB's first director and the agency would seem to be primed to make additional headway in the coming year. In its brief existence, the CFPB has a number of achievements to celebrate. Story by Bill Hardekopf for LowCards.com.

European Union Advocates Limiting Fees on Debit and Credit Card Transactions
European Union officials on Wednesday proposed ways of lowering the fees that consumers do not see, but ultimately pay, for using credit card services like Visa and MasterCard. The measures are aimed at so-called interchange fees, the behind-the-scenes fees incurred whenever consumers tap in their PIN codes or sign a credit card receipt. The rules would also limit the surcharges imposed by some merchants on card payments for purchases, in particular airline tickets. Story By James Kanter for The New York Times.

Visa Profits Beat Estimates as Card Spending Increases
World-wide spending on Visa credit and debit cards climbed in the third quarter. In the United States, debit card purchases advanced 12 percent to $300 billion, and credit card spending increased 10 percent to $270 billion. Story by Dakin Campbell for Bloomberg Businessweek.

LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.32 percent, slightly below the 14.34 percent average from last week. Six months ago, the average was 14.32 percent. One year ago, the average was 14.35 percent.

A new kind of credit card fraud is targeting busy office workers who are being told that they are in trouble with the law for missing jury duty.

The scheme was finally busted by Wisconsin authorities, but not before Joseph Dees and Courtney McFeater had racked up over $270,000 in fraudulent purchases.

Dees and McFeater would perform internet searches for office workers in busy doctor's or real estate offices. They would call those workers and say that they had missed jury duty. After a series of questions trying to "resolve" this failure to come to court, the criminals would acquire key personal information, including names, phone numbers, social security numbers and mother's maiden names.

With that vital information, the criminals were able to get new credit cards sent to their address. Then, they would charge various transactions on the cards until those cards were cancelled.

Regarding Dees' technique with his victims, U.S. Postal worker Brian Plants said, "He was very convincing, and very calm and if they didn't want to give out their information, he would somehow keep them talking and convince them to give out personal information on the phone."

The suspects pleaded guilty in court, and now they face a sentence of up to six years in jail. In total, their criminal activities affected more than 50 people.

To avoid similar issues in your own life, never give out personal information on the phone to someone who has called you--you need to be the one initiating any call. Be cautious about the people you speak with at all times, and your credit cards will hopefully be protected.

Why Stolen European Credit Cards Cost Five Times as Much as U.S. Ones
European hackers accused of selling stolen data only collected about $10 for each stolen American credit card number, according to an indictment from federal prosecutors. But European cards netted the hackers around $50 a pop. European banks and credit card providers have a delay in processing transactions over weekends. Thieves can clone European cards and capitalize on the delay by going on weekend spending sprees. The result: a wave of credit card fraud by American criminals targeting European victims. Another factor in the low cost of U.S. credit cards in these criminal schemes: it's easier to get them. Story by Andrea Peterson for the Washington Post.

Over a Million are Denied Bank Accounts for Past Errors
Mistakes like a bounced check or a small overdraft have effectively blacklisted more than a million low-income Americans from the mainstream financial system for as long as seven years as a result of little-known private databases that are used by the nation’s major banks. The problem is contributing to the growth of the roughly 10 million households in the United States that lack a banking account, a basic requirement of modern economic life. Institutions like Bank of America, Citibank, and Wells Fargo say that tapping into the vast repositories of information helps them weed out risky customers and combat fraud--a mounting threat for banks. Story by Jessica Silver-Greenberg for the New York Times.

I Am Still Waiting for My Phone to Become My Wallet
A truly mobile wallet has long been described as imminent. But it remains elusive. Some innovations have begun to bridge the gap, but most have been a disappointment or have not yet worked well enough for mainstream adoption. Wireless carriers are reluctant to hand over potentially lucrative streams to companies like Apple and Google, which already make billions from devices and the software that runs on them. Banks and credit card companies are also rolling out mobile checking services and applications. And industry heavyweights like PayPal and Groupon are also scrambling to get their own offerings into the market. Story by Jenna Wortham for the New York Times.

Discover Luring Banks with Lower Fees
Discover has been in negotiation with several banks recently trying to get them to convert to their services instead of Visa or MasterCard. It has succeeded with a few banks in Illinois, but Discover plans to expand well beyond that state in the coming months. The main reasons that banks are considering the transfer is because Discover promises lower fees and gives banks a chance to use their names on the cards without the Discover logo. Story by John Oldshue for LowCards.com.

U.S. Says Ring Stole 160 Million Credit Card Numbers
In one of the largest hacking and data breach cases in the country, foreign hackers stole and sold 160 million credit card numbers from more than a dozen companies, causing hundreds of millions of dollars in losses. The scheme was run by four Russian nationals and a Ukrainian. The victims in the scheme, which prosecutors said ran from 2005 until last year, included J. C. Penney, 7-Eleven, JetBlue and Heartland Payment Systems, one of the world’s largest credit and debit processing companies. Story by Nathaniel Popper and Somini Sengupta for the New York Times.

Money Management Tips for College-Bound Students
Many students will soon leave home for college, taking another step toward independence and managing money on their own. Students unprepared for new freedom can quickly go into debt and ruin their credit score. Parents need to make sure students are prepared to live on a budget as well as understanding the right way to use credit, stay out of debt and build a good credit score. Parents should make a money management plan with their student. Story by Bill Hardekopf for LowCards.com

Well Fargo Halts Card Debt Sales As Scrutiny Mounts
Wells Fargo has halted sales of its customers' unpaid consumer loans to outside debt collection agencies. It also comes at a time when regulators are ratcheting up scrutiny of banks' collections operations. JPMorgan Chase faces a pending federal enforcement action and a lawsuit from California's attorney general over its credit card collections practices.  Story by Maria Aspan for American Banker.

Top Credit Card Mistakes
There are an estimated 1.5 billion credit cards in use in the United States and that can make them seem pretty ubiquitous. Nevertheless, access to credit cards is a privilege not a right, and if you make mistakes, you'll pay a price--sometimes a hefty one. With that in mind, we offer this list of serious credit card mistakes and their equally serious repercussions. Story by Adam Levin for ABC News.

LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.31 percent, slightly below the 14.32 percent average from last week. Six months ago, the average was 14.33 percent. One year ago, the average was 14.34 percent.

Two weeks ago, a federal indictment charged five gang members with stealing more than 160 million credit card numbers from around the world during the past seven years, resulting in hundreds of millions of dollars in losses. The four Russian nationals and one Ukrainian were part of the largest data heist ever prosecuted. Among the victims of the hacking ring were JetBlue, J.C. Penney, Dow Jones and 7-Eleven.

The indictments showed that these gang members sold the stolen American credit card numbers for roughly $10 apiece, while the European cards went for $50. This begs the question: why are European credit cards worth more than American ones?

One factor has to do with the processing procedures of European cards. With some European cards, there may be a delay in processing transactions over the weekend. So transactions can occur before the fraud detection kicks in, allowing more fraudulent charges to occur on these European cards.

Another reason is supply and demand. In America, stolen credit cards are more readily available so criminals have to pay less for these cards. In addition, American cards do not have the same chip and PIN security most European cards have. Thus, they are easier to steal and more likely to be targeted by credit card fraud.

As Levi Gundert, the leader of an Internet security research firm called Team Cyrmu, told the Washington Post, "There's an overwhelming amount of U.S. card supplies" on the black market, making these cards far more susceptible to fraud than their European counterparts.

Reports from the IRS reveal that government employees spend over $29 billion on federal credit cards every year. This is actually a decline from the nearly $31 billion in 2011, but they still reveal a shocking amount of money flowing through government-funded plastic.

Most of the charges on these cards are completely legitimate. They cover items that the employees need for their jobs. However, a 2008 audit by the Government Accountability Office indicates that 48% of the transactions over $2,500 occurred in violation of federal rules.

One case of fraud involved a longtime employee of the U.S. Forest Service who issued convenience checks to her boyfriend from 2000 to 2006. Those checks added up to more than $640,000, which he used for mortgage payments, gambling, and car payments. That is only one of countless cases the IRS is now investigating.

The government does receive rewards from the money spent on the 3.5 million federal credit card accounts. Last year, that earned $306 million.

"Purchase cards in the federal government are used for official travel, supplies, and services directly related to agencies’ missions and serving the American people," said Daniel Cruz, a spokesperson for the GSA.

That may not be the case all the time any longer. Investigators continue to dive into reports from 2012 and prior years.

Of all the ways we use aluminum foil, you'd never expect someone to turn it into a tool for credit card fraud. Nevertheless, some criminals in Kansas City have discovered that covering satellites with aluminum foil can help them spend unlimited amounts of money on stolen credit cards.

A number of businesses have satellites on their roofs that communicate with credit card processing centers. These centers let businesses know if someone has reached his card limit or has a card with suspicious charges on it. Thus, by blocking the satellite, the crooks prevent the stores from stopping their unlawful purchases.

The thieves in Kansas City are mainly targeting small businesses with the aluminum foil because businesses with large volume transactions are more likely to catch on to the problem. In one of the known incidents of foil wrapping, a thief used a fraudulent credit card to buy $1,665 worth of cigarettes from a neighborhood business.

Kansas City police have shared images of their discovery with other police departments to ensure this problem doesn't spread quickly. However, it is safe to assume that the small handful of thieves here are not the only ones to discover this simple, yet effective, scamming technique.

Credit and debit card fraud can hit even the rich and famous.

The wife of a part-time Seattle Mariners outfielder allegedly used the debit card of his star teammate's wife to charge almost $180,000 from the online store of Saks Fifth Avenue.

Maria Peguero, the wife of Carlos Peguero and daughter of the late Cincinnati pitcher Pedro Borbon, used the debit card of former Cy Young award winner Felix Hernandez's wife to make over 60 purchases, according to a report in the Seattle Times.

Peguero pleaded not guilty and is free on bond but faces three counts of wire fraud. This could result in 20 years in jail.

The purchases were made in 2012 between June 26 and October 9 and were shipped to Peguero's apartment. Authorities began investigating the purchases because the billing and shipping addresses were different.

Carlos Peguero played in two games for the Mariners in 2013, spending most of his time with their Triple A team in Tacoma. Felix Hernandez won the Cy Young award in 2010.

The security breach that took place in Target stores during the peak holiday shopping season hurt more than the giant retailer. It created substantial headaches for the banks and issuers behind the 40 million accounts with additional costs of fraud and replacement cards.  Banks have reacted with restrictions, account monitoring and some potential lawsuits against Target.

JP Morgan Chase immediately responded by restricting withdrawals to no more than $100 a day in cash and $300 in purchases on customers who used debit cards. The bank has since raised those limits to $250 a day in cash and $1,000 a day on purchases. Chase also opened a third of its branches to help issue new cards and work with larger withdrawals.

Some banks, such as Chase and Citi, are reissuing the cards it considers at risk. Cards are being sent by mail during these first days of January.

Banks are also warning their customers of steps to take to protect themselves and reduce online risk.

American Express sent out an email to customers advising them to create unique passwords with a combination of letters and numbers; regularly check on account activity; review credit reports on a regular basis; and avoid giving out personal information in email or over the phone.  American Express also recommended its cardholders sign up for account alerts that will send a message when there is any activity in an account.

PNC is asking their customers to closely monitor their accounts for unauthorized purchases. The bank reassured their cardholders that they would not be liable for purchases they did not make.

The fact that the affected debit and credit cards had magnetic strips may hasten the development or movement to cards with either chip and pin or biometric technology.

Recent security breaches at Target, Skype and Snapchat show that identity theft has become a major problem in our society. Unfortunately, personal information, email, credit cards and bank accounts are not as private and protected as we think. It is important for consumers to recognize suspicious activity and take steps to protect themselves.

Here are the top 10 signs of identity theft.

1 – Unauthorized Credit or Debit Card Purchases

Fraudulent credit card purchases are a clear indication of identity theft. You need to carefully review each transaction that appears on your credit card statement. If you notice something on your account that you do not remember buying, you need to contact the card company immediately.

2 – Unexpected Credit Approvals

Have you ever been approved for a loan or a credit card you never applied for? That may be a sign of identity theft. You have to be careful about jumping to that conclusion since some businesses send out mass mailings of what appear to be approvals of a loan.

3 – Instant Credit Decline

This one applies to people who normally have good credit and stay up to date with their credit card payments. If you try to apply for a loan and instantly get declined, it may be because there are issues with your credit you don't know about. The same is true if you try to use your card and it gets rejected at the register. If you know you should have credit and you don't, you need to investigate this issue.

4 – Unprompted Collection Letters

If you start getting collection letters in the mail from companies, especially ones you may not deal with, you need to contact them to understand the problem. You may find that someone else has been opening accounts under your name. Call the collection company and explain the situation.

5 – Email Account Issues

Sometimes an identity thief will hack into your email account to see what kind of information is stored there. They will check for bank statements, credit card receipts and any other financial information.

6 – Flagged Account Warnings

If your bank or credit card account has odd charges on it, your financial institution may flag your account for closer monitoring. If you get a letter or call, you need to talk to the bank and see what is going on. Make sure that you know who you are talking to without question because it may actually be someone looking to steal your identity in the future. Do not give out your social security number or other sensitive information without verifying the identity of that person.

7 – Credit Score Decreases

If you notice a severe drop in your credit score, it may be the work of an identity thief. Dropping a couple points from time to time is to be expected, but not dropping 50+ points. There should be a page in your credit report that details the various accounts you have open. If you notice one that you personally did not open, contact the company to see what they can do.

8 – Surprising Arrest Warrants

If you have a warrant out for your arrest for no reason, someone may have stolen your identity to commit a crime. Talk to the police about where you were during the warrant-related incident and see if they can track down the real criminal.

9 – Medical Insurance Denials

Some identity thieves will use medical insurance information to take care of physical problems they are experiencing. They essentially visit the doctor and then charge the bill to someone else. If you get unexpected medical bills in the mail or you get denied insurance coverage when you have a problem, you could be a victim of ID theft.

10 – Missing Letters

Missing mail you thought you should have had by now? Someone may have taken it right out of your mailbox. Call the company and see if they did in fact send something out. If so, have them resend the letter and monitor your credit accounts in the meantime.

Here are three tips to protect yourself from identity theft:

• Use a credit card instead of a debit card. Credit cards offer more fraud protections and it is easier to dispute an unauthorized on a credit card instead of a debit card. If you continue to use your debit card, regularly change your PIN, sign up for fraud protections services, and sign the back of your card.
• Regularly change your password and don't use the same password for multiple accounts. Passwords should be a combination of letters (upper and lower case), numbers and symbols.
• Take advantage of free credit reports from the three national credit bureaus and regularly monitor your reports for fraudulent activity. You can get these free reports at AnnualCreditReport.com.

What happens to your credit card once it is stolen?

If it is someone physically stealing your wallet or purse, the thief may take your card down the street and immediately go on a shopping spree before you even know it has gone missing.

But what about credit card numbers that are part of a major hack such as what we have seen with Target or Neiman Marcus? Thieves who are involved in large-scale hacks often undertake the same steps in order to make a quick dollar off the stolen merchandise.

Typically, they will put the numbers up for sale on a card forum, otherwise known as a card mall. The sellers make their money based on the value of your card number. "Bad" credit card numbers may sell for just a few cents, but good ones, like those stolen from Target, may each sell for over $100.

The buyers on these forums are usually another group of thieves. They are the ones that actually use your card information to make purchases.

Once these numbers have been purchased, the thief will print a new card with the same information. The equipment needed to print a counterfeit card is not expensive. Dave Lott of the Federal Reserve Bank of Atlanta told NBC News that criminals can buy equipment that print cards for about $100.

That person will then use the replica card to buy items that can easily be sold online. Smartphones and luxury items are usually the best options because they sell fast on the Internet.