Last week, it was learned that a security breach within retail giant Targets’ credit card system resulted in data from 40 million credit and debit cards being stolen. The theft appears to be the second largest, after a similar attack in 2005 against the parent company of retailer T.J.Maxx that involved data from 45.7 million credit card users.

In the wake of the Target story, experts warned credit card users to watch their credit card and debit card statements for fraudulent charges.

Overall, the tone was that this type of massive cyber attack on credit and debit card systems is now a fact of life. Credit card fraud no longer involves someone picking up a discarded receipt outside a store. With today’s technology, thieves can electronically grab data from millions of card users. Short of cutting up credit cards and using only cash, most people remain vulnerable to credit card fraud.

Despite laws and policies that generally protect individual card holders from serious financial harm, the cost of fraud is huge — and everyone pays.

People who were not shopping with a credit or debit card at Target from Nov. 27 to Dec. 15, when the data theft occurred, might breath a sigh of relief. True, their credit card data was not compromised, but they are paying for credit card fraud in the form of higher prices at stores and higher fees from banks and credit card companies.

While hundreds of millions of dollars are spent on security systems by banks, credit card companies and large retailers, this modern form of theft continues. Every year, billions of dollars are lost to fraudulent credit card use, shoplifting and employee theft.

While stories of security breaches involving millions of credit card or debit card accounts are not rare, it’s likely the public is not hearing about every major theft or fraud. Most big retailers, banks and credit card companies prefer to keep these stories quiet. It’s not good publicity.

But whether the theft is reported in the news or not, the retailers, banks and credit card companies have no choice but to build it into their cost of doing business. They spend hundreds of millions trying to prevent or minimize theft. But whether it’s old-fashioned shoplifting or technological break-ins that steal credit card data for use in fraudulent purchases, those costs are passed on to everyone.

Ten years ago, a University of Florida criminology professor, Richard Hollinger, Ph.D., said “An average family of four will spend more than $440 this year because of inventory theft.” No doubt, today that figure could be $1,000, adding the growth in sophisticated data-theft resulting in fraudulent credit card purchases that are refunded by retailers or credit card companies.

Some experts see technology helping. The magnetic strips on U.S. credit cards are outdated, compared to credit cards with an embedded microchip that are used in much of Europe, Canada and Hong Kong. But even if new technologies put up new barriers to identity theft and credit card fraud, it’s a sad fact that the thieves will find ways to adapt.

The costs are high — a 2009 estimate said banks lost about $11 billion due to credit card fraud while merchants lost over $200 billion. That same report said that credit card customers lost about $4 billion. But in reality, everyone pays for the hundreds of billions of dollars lost to credit card fraud and identity theft through higher prices and fees.