May 26, 2016 4 min read

Identity theft is a growing problem in the United States. Even more troubling is that the number of these incidents is expected to explode. This is because thieves see the closing of one opportunity that they want to capitalize on.

Banks and credit card companies are introducing EMV chips in their cards. EMV – which stands for Europay, MasterCard and Visa – is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions.

You have probably received some of these cards as your old ones expire. These chips are new to the U.S., but have been used for a decade in other parts of the world.

“Britain, Canada and Australia in particular detailed data on acceleration in fraud during the migration period,” said Julie Conroy, research director at Alte group. “It all went up as the counterfeit opportunity went away.”

These jumps were huge. In England, online fraud rose 79 percent in the first three years. The rate more than doubled in Canada and Australia.

Estimates are that this fraud could total $10 billion in the U.S. over the next four years. The reason for these increases is that a lot of the information that has already been stolen will become less valuable to the crooks as the new technology rolls out. Because of this, they will push more stolen information out and it may become even cheaper in the black market for stolen data. There are actually places where crooks buy and sell your identity.

These new chip cards create their own problems however. While it is harder in some ways to get your data than from the magnetic strip card that we have been using, the EMVs do have their own vulnerabilities. The old-style cards will still be around from some issuers for several years. This means we must still be aware of “skimmers” and the old methods of stealing information.

There are scanners easily available online that can steal your information off of the new EMV cards. The scanners, which can be purchased for under $30, steal your information by just passing by you. They do not need to physically see your card. For another fee of less than $200, the crooks can buy blank plastic credit card stock and a machine to emboss your information on a counterfeit card. Scary, isn’t it?

One way to get protection from this new threat is to acquire a RFID data blocker card. You carry this in your wallet or purse and it prevents the contactless readers from working. There are also some small bags on the market that you can carry your cards in that will block the transmit ion signal.

Thieves keep inventing new technology to compromise all of the newest devices to stop them. It is almost a competitive war between good and evil. The only thing for sure is that there will always being someone, somewhere trying to steal your identity.

It is important that you monitor your credit reports on a regular basis. The official government website is www.annualcreditreport.com. You are entitled to a free report every 12 months. Reports are available from the big three credit bureaus. They will have many of the same accounts listed on all three. However, they are not always identical because some creditors do not report your history to all three.

Some people look at all three at one time and some people like to look at only one and come back and visit a new credit bureau every four months. Doing that gives you more opportunities to find a problem quickly. If you are not planning any major purchases soon, you might consider putting a freeze on your credit. This prevents any new accounts to be opened in your name. You can continue to use current accounts and you can remove the freeze if your needs change. Watch for more updates on identity theft in future columns.

Your identity is a valuable asset; make sure that you protect it.

Gary Boatman is a Monessen-based certified financial planner. He is the author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, contact business editor Michael Bradwell at mbradwell@observer-reporter.com