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Credit Card Internet Security – Why Obscurity Is Not Enough

Credit card internet services and facilities that are available today are ingenious in combating the growing concerns that most people have regarding fraud and online security. Handing over credit card details to a stranger in any environment can be a worrying prospect, but when you don’t even know on which continent the site owner lives, you can feel perhaps justifiably concerned.


While it is true that there is a considerable amount of credit card fraud in the world today, how worried should you really be, what tips should you follow in order to help safeguard your personal financial details, and what tactics and methods are the credit card companies developing to help increase security and peace of mind?


Payments made using your credit card almost always involve a certain degree of trust. Imagine being at a restaurant and paying for your meal by card. In many cases, the waiter may take your card away and it could be out of your sight for several minutes. You have no guarantee that your details aren’t being recorded and kept for fraudulent use in the future.

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Similarly, in many high street stores you may hand your card over, but there is nothing to stop the person behind the counter swiping your card twice, or taking a copy of your card details. Mobile phones have such excellent cameras these days that it is very easy to take a picture of a credit card without the person even realising.


It has even been discovered that, with Chip and PIN security services improving the overall level of security, some people have resorted to using the video facility on a mobile to record the PIN being entered. When you consider the dangers and risks in terms of security which are a fundamental part of using a credit card even in the high street, does the internet pose any more risk, or less?


In truth, credit card internet security is generally better than that found in the high street. For example, your card never leaves your hand, your details are entered only once, and a confirmation receipt is generated for a successful transaction. You can then cross check this with your credit card statement, perhaps even online within hours.

With trillions of bytes of data pounding through the veins of the world-wide-web every second, your credit card details have the advantage of obscurity. It would take an ingenious hacker to be able to pull your credit card details out of the hat, intact and with enough related information to make them useful. To be honest, if a hacker is that clever they’re unlikely to be spending time fishing the web for the occasional credit card, and will most likely have a far more ingenious scam going on.


However, although there is some security in obscurity, there is also a degree of security which can be included that you really must follow carefully. Not all websites have the credit card details transmitted securely, and you need to make sure that any web page you visit which requires your card details to be submitted has a number of security features present.


The first point to note is that the web address should not begin with the letters http, but should begin with https. The extra letter ’s’ at the end stands for ’secure’ and means that the website will securely encrypt your card details, so that even the website owner will be unable to view them, quite apart from any hacker.

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But to be doubly careful, look at the bottom right corner of your browser window – if the web page is secure, and your card details encrypted, you should see a small padlock icon. This, in addition to the prefix https, signifies that it is safe to enter your card details.


However, you have to distinguish between the merchant site actually taking your card details and the website that directed you there.  When you purchase something online, whether it be an eBook through Clickbank or PayPal, or hard goods from an online store, it is not the online store or the website advertising the product that need be secure, but the site actually taking your card details. That will be run by a bank or other online payment processor such as PayPal, 2-Checkout and so on.


Credit card internet transactions are also covered by the liability legislation which means that payments over a certain amount are protected, and that should anything go awry, the credit card company will be liable for any fraudulent transactions.

Some credit card firms are taking online security still further, and there is one online bank that provides a special online credit card. This is a virtual credit card, the number of which is unique for each transaction. In this way, if you click the ‘buy’ button on a web page, a popup window will appear from your bank with a unique credit card. The number will have been generated for that single transaction, and you can even enter a maximum amount to be allowed for the transaction, avoiding any fraudulent transactions and preventing double processing.


Credit card internet security is an issue we all need to be aware of, but as long as you only enter your details on web pages with the security features clearly visible, you should be far more safe that typing your PIN into a keypad in the high street or handing your credit card to a complete stranger in a shop or bar.

The Importance of PIN Numbers


Credit and debit cards are the ultimate in spending convenience. They make it easy for us to buy online, by phone or by mail. They help us reserve cars, hotel rooms, plane tickets and more. They eliminate the need to carry large amounts of cash. And when we need cash but don’t have it, we can take them to the ATM and withdraw money in a snap.

Credit and debit card issuers institute certain security measures to prevent cards from unauthorized use. One of the most important of these measures is the personal identification number, or PIN. Cardholders are required to select a PIN number when their cards are issued. They must enter this number when withdrawing cash from an ATM. With debit cards, it is also required when making purchases from many merchants.

Keeping our PIN numbers safe is extremely important. If someone steals a credit or debit card, he can’t withdraw cash without the PIN number. But if the thief has that number, he can withdraw or transfer money and check the cardholder’s account balance. With credit cards, you can only be held liable for up to $50 in unauthorized charges. But with a debit card, you may have to pay as much as $500.

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Most of us know that it’s unwise to write down our PIN numbers, especially if we carry them with us. So we try to choose numbers that are easy for us to remember. Unfortunately, numbers that are easy to remember are also easy for a criminal to guess. Here are some numbers that are often used as PIN numbers, but are not the best choices:

* Birthdays (our own or those of family members)

* Birth years

* The last four digits of your or a friend or family member’s phone number

* The last four digits of your social security number

* Sequential numbers (such as 1234, 5678, etc.)

* Repeating numbers (1111, 2222, etc.)

* Your house number

Any of these numbers are pretty easy for a thief to guess. In the case of phone numbers and social security numbers, someone could find those by stealing your mail or trash. Birthdates are also reasonably easy to find out.

Still, we need a number that is easy for us to remember. If we forget PIN numbers, we usually have to contact our card issuers and have them reset. When you need money right away, that’s the last thing you want to deal with. Here are some tips for choosing a secure PIN number that you won’t forget.

* Use the birthday or birth year of a distant or deceased relative, or of someone famous (unless you’re a well-known fan). In general, birthdates are fairly safe as long as they aren’t those of someone in your household. But the farther removed the person is, the better.

* Think of a major event in your life that is significant to you, but unlikely to be significant to anyone else. A wedding anniversary is pretty obvious, but how about the date you became engaged, or the day you got your learner’s permit?

* Use the last four digits of a phone number you know but no longer call. This could be a phone number you had when you lived somewhere else, that of a former employer or that of a deceased relative.

A PIN number could be the only thing standing between a criminal and your hard-earned money or credit line. Choosing it carefully will give you peace of mind while allowing easy access to funds when you need them.


Lost or Stolen Credit Card?


When it comes to finances, few things are as unnerving as losing a credit card or having it stolen. By the time you realize it’s gone, someone could be living the good life and charging it to you. But by taking action quickly, you can avoid most, if not all, liability for unauthorized charges.

When their cards go missing, cardholders are protected by the Fair Credit Billing Act (FCBA). This law mandates that as long as you report your card missing or stolen in a timely manner, you can be held liable for no more than $50 in unauthorized charges. And if you report it before the card is used, you can’t be held responsible for any charges made.

If you find that one or more of your cards are missing, here’s what you need to do:

1. Report the missing card to the issuer immediately. If you don’t know the phone number to call, it should be printed on your credit card statements. Reporting the theft or loss as quickly as possible is crucial, so it’s best to keep a list of your card numbers and the fraud reporting phone numbers in a safe place for easy access.

2. Write a letter to each credit card issuer summarizing the details of your phone conversation. Include your name, card number, when you noticed your card missing and when you reported it. Also include the name of the representative you spoke to. Make a copy for your records, and send the letter via certified mail or with a return receipt request.

3. Keep a close eye on your credit card statements for several months. If you notice any charges you didn’t make, contact the issuer immediately. You should not have to pay any charges made if you have already reported your card lost or stolen.

Minimizing Your Risk

Anyone can have his credit card stolen. But there are a few things you can do to minimize your risk. These include:

* Leave your credit cards at home when you don’t plan to use them. You’re much more likely to have them stolen from your wallet or purse than from your home, especially if you keep them locked up.

* Do not carry your PIN number with you. If you do, a thief can easily use your card to obtain cash advances.

* Carefully check your credit card statements as soon as you receive them. Thieves do not have to have the actual card to make charges to your account. They can often make purchases online, by phone or by mail with only your name, card number and expiration date. These can be obtained by stealing records from stores you’ve done business with in the past.

* Be careful when using your credit card. Only buy online from websites you trust, and be aware of suspicious activity when using your card in person. Thieves have been known to snap pictures of credit cards with cell phone cameras and use devices to read cards as they are swiped.

No matter how careful we are, having our credit card or card number stolen is a possibility. By keeping an eye on account activity and taking action quickly if a card is lost or stolen, you can prevent a thief from benefiting from his crime and avoid having to foot the bill.




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