ID Theft Wakeup Call

(CBS)  A security breach at a company that processes payments for MasterCard, Visa and American Express could have exposed millions of MasterCard numbers to hackers.

And even though officials of the company, CardSystems Solutions, and of MasterCard, are playing down the potential damage this time around, experts say the incident is yet another reminder to consumers that they need to take extra care to keep financial information from getting into the wrong hands.

Ellen McGirt, a senior writer at Money magazine,

tells

The Early Show co-anchor Harry Smith, "This particular company … processes $15 billion in transactions a year. This is huge. And it's a name that we don't know, so we don't think to look there."

Though Social Security numbers weren't involved, McGirt says, someone with your account number "might go on a shopping spree. But there are federal rules in place. There's a $50 limit on those transactions... But it's a hassle. A huge hassle. And the responsibility is on you to document and prove that these in fact were not your charges. That's where it gets tough."

McGirt says MasterCard holders needn't necessarily fret: "Because MasterCard has been on top of it pretty much, we're not recommending that people cancel accounts. Wait until you hear from your issuer. But everybody needs to be vigilant.

"This is a time when the consumer needs to be checking their credit reports and opening their mail: all the things that we should be doing anyway to make sure there's no suspicious activity."

McGirt suggests that you get a shredder, and a high-quality one that "pulverizes" anything you put in it, including old credit cards.

Another idea: Pay bills online. "The counterintuitive thing about going online is making sure there's not a lot of mail coming to your house that you can't control," McGirt points out. "Pay your bills online. Do your utilities online. Make sure all your statements are coming in online. Then you can track them 24/7, and there aren't things lying around the house that somebody you don't know, like a contractor or his buddy, can pick up."

Also, something as basic as cleaning out your wallet or purse can help. Says McGirt, "Most people lose their wallet or their purse, and that's where their Social Security card is and doesn't need to be. If you have a health insurance card that uses your Social Security number as an ID, ask for a change. Take that out of your wallet. That's where you're going to be most vulnerable."