The feds have indicted a 28-year-old "superhacker" in a scheme to steal more than 130 million credit and debit card numbers. MoneyWatch.com's Eric Schurenberg tells you how to protect yourself.
>> Now to a notorious hacker who's been busted. He's accused of plotting to pull off the biggest-ever theft of credit and debit card information ever, including stealing an astounding 130 million credit and debit card numbers. And he's reportedly a former government informant. Albert Gonzalez called his credit and debit card theft ring operation "Get Rich or Die Trying." On Monday the get-rich part of that scheme died as federal agents indicted the super hacker in what's being called the largest identity theft case in U.S. history. The 28-year-old Gonzalez allegedly broke his own record for identity theft when he and two unnamed conspirators were charged with stealing more than 130 million credit and debit card numbers from three corporate giants. Ironically, Gonzalez had helped the government hunt hackers for a time until it was found he was working with and was tipping off the criminals he was supposed to expose. jail door slam Already in jail under a 2008 indictment for corporate hacking, Gonzalez now faces up to 35 years in prison and a million dollars in fines if convicted. And joining us now is Eric Schurenberg, editor in chief of CBSMoneyWatch.com, Eric, good to see you.
>> Eric Schurenberg: Hi, Jeff.
>> Thanks for being with us. A lot of people see this and they say, "Am I a victim?" So if you're out there, if you're wondering whether it's him or some other perpetrator, how do you figure out if you are a victim?
>>
Schurenberg: Well, most states have rules that anyone -- that if you have been compromised or might have been compromised, the card provider has to tell you. But in the meantime, you ought to check your credit card statements.
>> You have to be vigilant.
>>
Schurenberg: You have to be vigilant. Check it religiously, every month. If you're online, check it more often than that. And if you see a dispute that seems -- like -- if you see a charge that seems a little strange, call the credit card issuer and tell them you didn't make that purchase.
>> And save your receipts as well.
>>
Schurenberg: I think that's always good practice.
>> Do all this stuff as you go along. Now, in the future -- this is looking back -- in the future how do you protect yourself?
>>
Schurenberg: In the future?
>> Looking ahead, as you make new charges.
>>
Schurenberg: Oh, okay. Well, first of all, use common sense. If someone calls you, never give your credit card out to someone who calls you. The bank doesn't need to check on your credit card.
>> Common sense.
>>
Schurenberg: They know the number already. Use bank ATMs rather than ATMs at convenience stores or other places like that. The security is going to be a little bit better there. And finally, when you shop online and use your credit card, make sure that the, the, the website is secure, and you can tell because there's "https" at the top, at the beginning of the URL.
>> Right, that's a very big one. Make sure that s is on there. If people are deciding whether to use their debit card or credit card, what's better?
>>
Schurenberg: Well, I think there are plenty of good reasons to use a debit card. The chief one being that, when you make a purchase, it doesn't add to your credit card balance. You don't have to pay interest on it. But that said, for fraud reasons a credit card is a little bit safer. You have only a 50-dollar liability, and a lot of credit cards offer even more protection than that: a zero liability policy. With a debit card it's a little bit more complicated. You only get the 50-dollar liability protection if you alert the issuer within two days of the fraud.
>> At some point you think, despite the dangers, the credit card might even be safer than paying cash.
>>
Schurenberg: I think that's, I think that's true, yes, because there are cases in which -- if the thing, if the thing you buy doesn't work or something like that, you have some protection built into your credit card.
>> When people think about this potentially happening -- and granted it does not happen to everyone -- what's the worst-case scenario?
>>
Schurenberg: Well, the worst case would be if this information is combined with other information about you to create identity theft. That is the nightmare scenario where criminals get a hold of enough information to start to open credit card accounts in your name. You might not find out about that for months. And that could be a real nightmare.
>> And the best-case scenario is it doesn't even happen, so stay vigilant. laughter Eric Schurenberg from MoneyWatch.com, appreciate your time this morning.
>>
Schurenberg: My pleasure, Jeff.
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