Tokenization may save travelers credit card debt, credit score damage

By Oscar Monfort on Aug 5th, 2010

Stealing credit card information is gaining popularity, and ABC-7 News in Los Angeles, California, reports that it is commonly occurring at hotels. Consumers give their credit card information to the front desk to easily make charges to their rooms, the bar and the hotel restaurant. When an establishment’s security is breached, this personal data can be stolen on a whim, potentially causing credit card debt for the victims.

According to ABC-7 News, merchants are adopting a new method of security called tokenization. Upon swiping a card, the numbers are immediately encrypted to keep the data safe in the case of a breach. Not all vendors or hotels have taken up this new method, however. ABC-7 News suggests that consumers make an effort to protect themselves.

Paying with cash or a debit card is safer than using a credit card. For consumers who prefer to use credit cards as their main currency, ABC-7 News recommends using a card that is not used for expenses at home in case the account is compromised.

When personal data falls into the wrong hands, it can result in credit card debt and long-term credit score damage that may take victims years to recover from.

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