Cyberthieves know more about credit and debit card security than you do — and sometimes more than the banks and credit card companies that issue those cards. What chance do you have?

Technology has made your financial information more vulnerable, but it can also be used to defend that information. Led by the rollout of chip-driven credit cards and debit cards, there is a new wave of tools and best practices you can use to give yourself a fighting chance against today’s criminals.

Credit card crime wave

There are many ways criminals can access information about your financial accounts, but your credit and debit cards are probably your greatest points of vulnerability. You use them in more places than you can probably remember. You carry them with you just about every time you go out. You type the numbers — including security codes — into more and more websites each year.

According to the most recent numbers from the Bureau of Justice Statistics (BJS), over 16 million Americans a year suffer unauthorized access to their financial accounts due to stolen information. The monetary impact of this totals $10 billion more than the value of all other property crimes reported to the National Crime Victimization Survey.

Consumers are protected against the results of such crimes, but only to a degree. Liability for unauthorized transactions is limited only if consumers report them (or the theft of a card) on a timely basis. However, the BJS reports that about one in every seven victims of financial information theft suffers an out-of-pocket loss. In addition, any resulting damage to your credit score could raise your future borrowing costs.

The worst may be yet to come. A recent wave of huge data breaches at major retailers and banks suggests that cybercriminals are gearing up, and their pool of misappropriated account information is growing.

The financial industry is not taking this crime wave lying down, and neither are consumers. Here are some ways you can protect your credit and debit cards from unauthorized use:

Insist on chip-enabled credit cards

A new generation of credit and debit cards is being issued with embedded computer chips in addition to the traditional magnetic strips. This makes it more difficult for thieves to make unauthorized copies of credit cards — a vital step, according to Paul Stephens of the Privacy Rights Clearinghouse.

“Most card fraud these days is from cloned rather than stolen cards,” he told WisePiggy, “and the chip system protects against that kind of fraud.”

However, rollout of the supporting infrastructure will be a potential hang-up. Merchants need to install chip-enabled card readers, but they can still use the old-fashioned magnetic strip readers on the new cards if they do not yet have the updated technology. Stephens cautions that when the magnetic strips on the new cards are used, they are no safer than the old-style cards.

Consider secure payment devices

Apple Pay and other systems devised by technology companies like Google and PayPal may present an intriguing alternative to traditional credit and debit cards. In the case of Apple Pay, the added security is two-fold. When using a credit or debit card via the Apple Pay function on an iPhone, your card information is held centrally by Apple and not exchanged with every individual merchant you pay. Also, the transaction is only authorized if the iPhone’s thumbprint reader senses a match. Here too, rollout could be a limiting factor, but Apple is aggressively signing up merchants and financial institutions to accept the service.

Check statements regularly

Online statements allow you to keep a closer watch of your transactions and balances, and the more frequently you do this, the sooner you will spot any potential problems.

Watch your credit score

Online services can help you keep a close eye on your credit report and credit score. In an interview on the FBI’s website, agent Jeff Lanza advises consumers that credit monitoring can not only tell you when rogue activity has damaged your credit score, but it will also show if any unauthorized accounts have been opened, so you can head off trouble before it happens.

Don’t do business on public networks

Financial transactions on public Internet connections leave you at the mercy of the network’s security, which may not be reliable. Plus, wireless communications in public can be pirated by Bluetooth devices. Limit your online business to private, secure networks. 

Criminals have always been with us, and always will be. It’s just their tactics that change. If you are willing to change some of your habits, you can stay one step ahead of them.