How to Protect your Credit Card from Cyber Crime
Shopping online can be an enjoyable and convenient experience. This also applies to fraudsters who are enjoying goods and services gratis, with the bill sent to you if you don’t protect your card details.
More from Credit Fraud and Protecting Your Credit Cards
7 January 2009
How To Protect Your Credit Card From Cyber Crime
The ease and convenience of shopping online has revolutionised the way we shop but it has also made life easier for fraudsters. ”
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A life of cyber crime
According to APACS, the UK Payments Association, Internet card payments have risen nearly four-fold over the last five years, to £34 billion. This figure includes all plastic – credit and debit.
However, the main area of card fraud was by phone, Internet and mail order (card-not-present or CNP) fraud, which was up by 37% last year, totalling £290.5 million. This type of fraud accounts for more than half of all card fraud losses.
The ease and convenience of shopping online has not only revolutionised the way we shop, it has also made life easier for fraudsters. As chip and PIN are not required when shopping online all they have to do is get hold of your card details and they are good to go.
Beware of phishing
Excuse me?
Phishing is the process of trying to obtain your personal information such as names, passwords and credit card details. Criminals do this by communicating with you electronically (through your e-mail or by instant messaging) and then directing you to a website that looks and feels authentic.
You might receive a message allegedly from eBay or PayPal asking you to update your account details, or from a social website such as YouTube, Facebook or MySpace. This will direct you to the website and ask you to put in your password and other personal details. Don’t do it.
These communications are always bogus. If you receive an e-mail from someone in cyber space telling you that you have won the Euro Lottery or that you must update your account details or that you can get a better mortage rate or loan – don’t open the mail, permanently delete it.
Web security
You can combat some of these spam e-mails with up-to-date web security. There are many applications that protect your PC from these types of messages with firewalls and/or anti-virus software. Using technology that can identify phishing will help prevent fraudsters from getting to you in the first place.
Online shopping
Use websites that are known to you and advertise that they are secure. Check their URL begins with 'https' in the address bar. Some larger retailers also have a padlock or security sign at the right hand side of the website and all should give the terms and conditions of security and, very importantly, a phone number as an option. If you are unsure about a site and they don’t offer an alternative option such as shopping in store or a phone number, don’t use them.
Creating a safer environment
Early in 2001 Visa introduced a security measure called Verified by Visa as an added security measure. It was aimed to help card issuers actually authenticate cardholders. Mastercard soon followed and introduced a payer authentication system called SecureCode.
At first, Verifed by Visa worried users as it comes up as a box just before you pay for your goods. It asks for your card details and a password. Some shoppers abandoned their shopping due to their unfamiliarity of the system. However, if you are shopping and this happens for the first time to your amazement, simply phone the retailer who will validate the authenticity of the process.
A recent shopping tool is Google Checkout, a payment method modelled on eBay’s Paypal system, for sending funds to another person.
Google acts as the middleman and you pay through its checkout system rather than typing your card details directly into the retailer’s site.
Google does not disclose the full card details to the stores where you shop and sellers can only view your e-mail address with your permission. Google will then pass on your cash, taken directly from your card. Sellers only get access to your address and/or phone number if it is necessary to complete the transaction.
So Google handles your data which means that your details won’t be passed onto another party. It also keeps your email address private.
Step inside, love
If you keep your details together, such as your PIN with your card and any online passwords then you are not only being negligent with your cards, you are also giving criminals an open invitation to defraud you.
If your wallet is stolen with these details the fraudster has everything they need to step inside your finances and shop ‘til they drop.
It is also commonly known that most people use the same password for all their accounts so it is a good idea to change passwords from time to time and use a different PIN for each card.
See also what to do if you fear you are a victim of credit card fraud.
