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CNN Live Today

Safe Cyber Shopping

Aired November 26, 2002 - 11:17   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL LIN, CNN ANCHOR: The numbers are staggering: 30,000 victims, almost $3 million in losses, and those figures may actually grow. Phillip Cummings is free on bond in New York today, charged in what prosecutors call the largest identity theft on record. Authorities say Cummings and a couple of buddies stole credit reports and sold them to criminals for $60 apiece. Buyers used the information to defraud consumers. Prosecutors say Cummings used his position at a company that makes software for banks to obtain contain credit bureau access codes.
Holiday season is prime shopping season in cyberspace. How do you protect your credit when you become a point-and-click Santa? Let's ask Lauren Young, a senior writer for "Smart Money" magazine. She joins us from New York this morning.

Hi, Lauren.

LAUREN YOUNG, "SMART MONEY" MAGAZINE: Hi, Carol.

LIN: You know, it's a complicated story, because the bottom line is people need to know your Social Security number, your birth date, credit card numbers, these are all things that is virtually our national identity' they make us when it comes to doing business across the country.

YOUNG: And virtually is the keyword there, because here you are sending it out online in many case, and have to be really careful how you protect it.

LIN: And when you're shopping online, and so many people are doing it, because we are all busy, how can you tell by taking a look at a site whether it is a secure site, and what does that really mean?

YOUNG: The key to security in a Web site, the first thing you want to look for is when you're giving out your credit card information, when you log on the URL it's "http" and then there's a semicolon, but you'll see an "s" pop up when you enter the secure part of the site. When you go into Amazon.com and you're starting to buy something, it's going to say "https" at the very top in that URL page.

LIN: All right, so that's all you have to look for. And if it doesn't have that, would you suggest not shopping there?

YOUNG: Absolutely, and there's lots of ways you can check out Web sites. One is to go to something called bizrate.com. It's a Web site rated by consumers, more than 2,000 sites out there, but you can find out what other people's experiences have been like, if it's a good Web site, if they've delivered stuff on time, and also, you want to make sure every web site you're going to buy something from, make sure that there's an 800 number on there that going to give you the ability or the opportunity to call in your order. Any good, legitimate outfit out there will have an 800 number on the home page, telling you if you don't feel comfortable ordering online, just call us up and we'll take your order over the phone.

LIN: Right, and you're suggesting that people not use all of their credit cards, but really focus on one credit card for your online shopping, right?

YOUNG: Pick one credit card for your online shopping, this is why. First of all, there are different degrees of protection with different credit cards. For example, the American Express Platinum program, if you have a problem with a product, you're not happy with it, it's broken, believe me, those people fight to make sure you get your money back, but some other credit card issuers may not fight as hard. So If you're a victim of fraud, you really want to know you're protected, and also, you don't want lots of credit card numbers floating around the Internet, so just pick one, and use that for all your online purchases.

LIN: But it's pretty unavoidable, isn't it, you have to give out your driver's license and your credit card number really to conduct a lot of these transactions, is that a fact of life?

YOUNG: Your credit card number for sure, but never give out your driver's license, and certainly not if your driver's license number is your Social Security number. Your Social Security number is something you should never, ever give out online unless you know who you're dealing with, like your insurer, and don't even carry your Social Security number around with you, your insurance card, because that is just basically inviting fraud. That's how these people were able to scam so many people, 30,000 people, and steal their identities.

LIN: Yes, because our society assumes that that's confidential information and only we know it, and therefore, it becomes our identity card.

YOUNG: That's right, Carol, and actually, people -- it's financial services firms who are really lax on this. It's not us the consumers; it's them.

LIN: Thank you very much, Lauren Young, and happy shopping.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired November 26, 2002 - 11:17   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: The numbers are staggering: 30,000 victims, almost $3 million in losses, and those figures may actually grow. Phillip Cummings is free on bond in New York today, charged in what prosecutors call the largest identity theft on record. Authorities say Cummings and a couple of buddies stole credit reports and sold them to criminals for $60 apiece. Buyers used the information to defraud consumers. Prosecutors say Cummings used his position at a company that makes software for banks to obtain contain credit bureau access codes.
Holiday season is prime shopping season in cyberspace. How do you protect your credit when you become a point-and-click Santa? Let's ask Lauren Young, a senior writer for "Smart Money" magazine. She joins us from New York this morning.

Hi, Lauren.

LAUREN YOUNG, "SMART MONEY" MAGAZINE: Hi, Carol.

LIN: You know, it's a complicated story, because the bottom line is people need to know your Social Security number, your birth date, credit card numbers, these are all things that is virtually our national identity' they make us when it comes to doing business across the country.

YOUNG: And virtually is the keyword there, because here you are sending it out online in many case, and have to be really careful how you protect it.

LIN: And when you're shopping online, and so many people are doing it, because we are all busy, how can you tell by taking a look at a site whether it is a secure site, and what does that really mean?

YOUNG: The key to security in a Web site, the first thing you want to look for is when you're giving out your credit card information, when you log on the URL it's "http" and then there's a semicolon, but you'll see an "s" pop up when you enter the secure part of the site. When you go into Amazon.com and you're starting to buy something, it's going to say "https" at the very top in that URL page.

LIN: All right, so that's all you have to look for. And if it doesn't have that, would you suggest not shopping there?

YOUNG: Absolutely, and there's lots of ways you can check out Web sites. One is to go to something called bizrate.com. It's a Web site rated by consumers, more than 2,000 sites out there, but you can find out what other people's experiences have been like, if it's a good Web site, if they've delivered stuff on time, and also, you want to make sure every web site you're going to buy something from, make sure that there's an 800 number on there that going to give you the ability or the opportunity to call in your order. Any good, legitimate outfit out there will have an 800 number on the home page, telling you if you don't feel comfortable ordering online, just call us up and we'll take your order over the phone.

LIN: Right, and you're suggesting that people not use all of their credit cards, but really focus on one credit card for your online shopping, right?

YOUNG: Pick one credit card for your online shopping, this is why. First of all, there are different degrees of protection with different credit cards. For example, the American Express Platinum program, if you have a problem with a product, you're not happy with it, it's broken, believe me, those people fight to make sure you get your money back, but some other credit card issuers may not fight as hard. So If you're a victim of fraud, you really want to know you're protected, and also, you don't want lots of credit card numbers floating around the Internet, so just pick one, and use that for all your online purchases.

LIN: But it's pretty unavoidable, isn't it, you have to give out your driver's license and your credit card number really to conduct a lot of these transactions, is that a fact of life?

YOUNG: Your credit card number for sure, but never give out your driver's license, and certainly not if your driver's license number is your Social Security number. Your Social Security number is something you should never, ever give out online unless you know who you're dealing with, like your insurer, and don't even carry your Social Security number around with you, your insurance card, because that is just basically inviting fraud. That's how these people were able to scam so many people, 30,000 people, and steal their identities.

LIN: Yes, because our society assumes that that's confidential information and only we know it, and therefore, it becomes our identity card.

YOUNG: That's right, Carol, and actually, people -- it's financial services firms who are really lax on this. It's not us the consumers; it's them.

LIN: Thank you very much, Lauren Young, and happy shopping.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com