Credit Card Companies and the Data They Keep

1. Credit Card Companies and the Data They Keep Alia Kawar

2. Credit Card Applications Amex Website

3. What Information They Ask For • Name • Email • Social security number • Date of birth • Address • Annual net income (from all sources) • Employer • Total financial assets

4. NY Times Article: Santana “Rudy Santana’s day began recently, as almost all his working days begin, with a name on a screen. The name that April morning belonged to a Massachusetts man in his mid-30s. He owed money on a credit card and a second mortgage, the screen told Santana, and was separated from his wife. He was behind in paying back $28,900.97 in debt. Which was why he was on Santana’s screen.”

5. J.P. Martin: Canadian Tire Executive • came up with a way of measuring the riskiness of a credit card applicant. • people who bought roof rakes, bird seed, carbon monoxide monitors for their homes, or felt pads for the legs of their furniture were most likely to pay off their debts in full every month. • people that bought things such as cheap motor oil or a “Mega Thruster Exhaust System” were pretty likely to miss paying their bill eventually

6. Credit Card Companies Are Watching You • Banks are compiling thousands of bits of data, like what you buy, where you buy it, sometimes even the company you keep.

7. Robert Manning is the author of "Credit Card Nation." He says the first problem the card company sees? Booze. Especially if you don't usually put margaritas on your Mastercard. • So, two guys walk into a bar, have a few drinks and split the bill on their credit cards. One guy's unemployed and in serious debt. The other has a job and pays all his bills on time. The joke is actually on both of them. Those drinks may have just cost them their credit. -Stacey Vanek Smith

8. Alcohol might be a red flag that you're unhappy because you're about to get laid off. Splitting a bill with unemployed debtor makes employed guy look bad to his card company. • Say Mr. Good Credit rewards himself with a rare trip to the spa? • Get a massage, red flag. His card company might think he's trying to relax because he's stressed about money. And what if he decides to go bargain hunting? Oh my gosh, maybe you're about to lose your job. You're starting to downscale to lower-cost stores. -Robert Manning

9. Splurging looks bad. Scrimping looks bad. • Card company watches everything you do and tries to figure out how likely you are to pay your bills. • Analyzing that information: data-profiling. • It's a $25 billion business.

10. What Identity Thieves Look For • 16 – Your Hobbies, Club Memberships, or Employer • 15 – Where You Hold Financial Accounts • 14 – Your Telephone Number • 13 – Your E-mail Address You can use your email address as your username for PayPal, which holds a lot of financial information about yourself. • 12 – Your Physical Address (including previous ones) • 11 – The Expiration Date or Confirmation Code of Your Plastic • 10 – Where You Were Born • 9 – Your Mother’s Maiden Name • 8 – Your Banking PINs • 7 – Your Passport Number • 6 – Your Driver’s License Number • 5 – Your Online Passwords (including usernames) • 4 – Your Actual Account Numbers • 3 – Your Full Name (including aliases) • 2 – Your Date of Birth • 1 – Your Social Security Number This piece of information is the golden ticket- it is the primary form of identity and can overrule your name in some cases.

11. Questions?