The Importance of Online Security
redit card companies offer some protections and there are things you should do to protect your privacy and personal information.
Data Security Standards – MasterCard and Visa Protections
To assure consumers that their credit card account information is safe, a set of 12 guidelines was set up by MasterCard and Visa that imposes strict regulations on all transactions between merchants and credit card companies. Every merchant that handles credit card account information is responsible for safeguarding that information and can be held liable for security compromises.
Discover’s Secure Online Account Number Program
Whenever you use your Discover card to make a purchase online, this program generates a random account number to “stand-in” place of your real one. This generated number is then sent to the merchant. Once it is verified with Discover Card, it will link to your account and the purchase is charged to you. The merchant never sees your true account number; only you and Discover have access to it. When the transaction is complete, the randomly generated account number is no longer valid. Any attempts to use it result in denial.
Matching Mailing and Billing Addresses
Another security measure is provided by some online merchants. By requiring that the shipping address match the billing address on the credit card, it safeguards consumers from thieves who steal account numbers and ship their fraudulent purchases to an unrelated address. Any prospective thieves will have to pick up their orders from your mailing address; not something the average anonymity-seeking thief will want to do.
VeriSign SSL (Security Sockets Layer) Technology
The leader in the field of third party systems to help ensure online credit card security, VeriSign is an encryption service. Merchants who use the service are given a public key to encrypt information and a private key to decipher. They provide a nearly unbreakable number of possible code combinations. Websites that participate will have check mark logo visible.
Safeguards Consumers Should Put in Place
- Protect your Social Security Number: Any crook who gains access to your Social Security Number can open a line of credit in your name and rack up a load of debt.
- Destroy all Solicitations: Intact offers found in your trash can be used by any unscrupulous character. Shred any unwanted cash advance checks and new card offers you get in the mail. Or better yet, opt out of any unsolicited offers by calling 1-888-5-OPTOUT (1-888-567-8688) to have your name removed from direct marketing lists. Or do it online at OptOutPreScreen.com, which is the official consumer credit reporting industry opt-out website.
- Shop only Through Secure Web Sites: The easiest way to identify whether you’re on a secure site is by the web address in the URL. If the web address begins with https://, then you’re in a secure site. If the address begins with http:// (without the “s”), then you are in a non-secure website. Also, your browser displays a padlock icon to indicate you are in a secure site. Usually, this icon is displayed near the bottom on the right side.
- Freeze Your Credit When Threatened: To deny any incoming fraudulent applications, freeze your credit with the three major bureaus. The freeze can be removed at any time should you want to open a new account.
- Report a lost or stolen card immediately: Call the number on your credit card statement. The longer you delay, the more time the thief has to run up charges.
- Features and Services Offered by Card Issuers: A whole array of services are offered by credit card companies aimed at further safeguarding your personal data and limiting the damage if it should be compromised. Some services are offered free of charge, others charge a fee.
- Credit Monitoring: Offered by all the major issuers, this service allows the card company to keep watch over your credit report and warns you when there are changes. Cost: Up to $15 per month.
- Identity Theft Insurance: Offered by all the major issuers, this insurance policy will cover the cost associated with reclaiming your good name after having your identity stolen. Coverage includes legal fees and lost wages. Cost: Up to $15 per month for up to $25,000 of coverage. Note: Identity theft clauses can be attached to most homeowners or renters insurance policies for $25 to $50 annually.
- Photo Security: Offered free of charge by Bank of America and CitiBank, your photo is placed on your credit card to prevent anyone from using your card.
- Purchase Monitoring: Offered free by every major credit card company, your transactions are compared to your typical or usual purchasing behavior. A red flag is raised if a purchase appears out of the ordinary and a freeze is initiated on your credit account until the transaction is confirmed as legitimate. Although not fool proof, this service can help stop the more obvious unauthorized transactions.
- Zero Liability Policies: Offered free by all the major card issuers, coverage varies from company to company. Once you report an unauthorized purchase on your account, your card issuer’s zero liability policy automatically kicks in, reimbursing you for any stolen funds.
- Federal Protection: Even if your issuer’s policy doesn’t cover all fraudulent situations, federal law will likely see to it that you don’t have to pay too much out of pocket. Under the Fair Credit Billing Act you will be liable to pay $50 maximum, no matter how much was illegally charged to your account.
About the Author
Noreen Ruth is a writer specializing in credit card and financial information, she has extensive knowledge and experience writing articles that help consumers use credit to their best advantage. For additional articles and extensive resources for everything you need to know about credit cards, please visit us at CreditCardsPI.com - Compare Low Interest Credit Card Deals.