Credit Card Security: How to protect yourself from credit card fraud

The WorldWide Web is a game changer when it comes to using your credit cards to shop online these days, and that means that it is also a rich new resource and playground fro cyber criminals.

Due to lack of security, one in 10 of Australia’s Internet users are now losing money to online identify fraud over the past year with losses totalling $1,286,000,000, reports VeriSign today.
That’s an average of $1,000 per fraud victim of the 1,300,000 people affected, with more being lot in the 18-24 year custom profile.
This represents a 30% jump on the figures estimated in 2007, and if you want to keep your credit cards and online ID secure you might want to give some thought to the ideas below.

Eight things you can do today to protect your personal and credit ID online.

1. Don’t use your credit card to make purchases online on untrusted sites.

Use a Debit card. This will limit your losses to what is on the debit card balance should you ever fall victim to online fraud. If you only transfer funds to it as required, then any losses will be tiny. Credit cards are limited to your credit limit, which could be tens of thousands of dollars.

2. Keep your firewall, virus and phishing scanner software up to date and run them when online.

If you use a PC  you could run it on Linux.  You could also change to an Apple computer. They are much more secure. Try the iMac, the Mac book or the Power Book when you next update.
However most people run Microsoft OS and this is known to have security issues, and is also a target for worn and virus makers. So keep your firewall, virus scanning and phishing software connected and up to date.

3. Use an encrypted keyboard.

This ensures that keyboard readers are foiled.
You could also use a bank that uses a scrambler for your pin number entry. The scrambler randomly changes each pin number to a letter, each time you log on. So your pin is scrambled each time you enter it. And will be different the next time you log in. This foils keyboard readers.
You may want to keep the iMac for the Internet only, and the PC for desktop only duties.

4. Ensure that you are putting your personal info into an encrypted form with a secure certificate.

You can tell this by the address line in the browser starts with https: instead of http:
This is essential as even a trusted site can have your details stolen is it does not secure your information.

4. Don’t use Internet Explorer for web surfing or purchasing.

Install a more secure browser. Try Google Chrome, FireFox, Safari or Opera instead.
Apple’s Safari for instance gives a warning when the security certificate is not known. Heed this warning and ensure you trust the site before proceeding.
This warning is when the browser detects a generic security certificate, not necessarily a bad site to transact with. For instance I have noticed that Melbourne IT, Australia’s peak Internet names registrar uses a generic certificate, and I obviously trust Melbourne IT so I proceed with the transaction.
If the certificate is issued by Verisign, Geo Trust or Thawte these are recognised as authentic and verified by the issuer, and show as such. These site also come with a guarantee.

5. Use a third party payment method for buying from unknown sites or don’t buy if they are not offered.

Small companies understand they don’t have the trust factor that major online brands command, and some cannot afford the security vigilance required online today, so most will opt for a third party payment gateway as a way to ensure they don’t lose business opportunities.
Third party payment options include Pay Pal, Digital River, e-Junkie, and 2Checkout. I have used all of these to pay for goods online. Pay Pal is the best known, some offer two so you can choose one. Again, when you go to the transaction area, make sure that you are on the right site by checking the URL address in the browser window, and that it is in fact a secure certified form.

6. Always check your credit card/ debit card statements for errors.

Determine that all transactions on there were authorised by you, and notify immediately your credit card /debit card issuer if there’s something on there that you don’t recognise.

7. Try to resolve the errors with the merchant before contacting your bank.

Your bank will give you more credence if you have tried to resolve your concern with the merchant first, so relate the conversation to them.
Even honest companies make mistakes, and I have had Amazon make a couple of double orders when I did not want this to happen.
Another time I pulled out of my order without confirming the transaction, and somehow it went through. These were quickly resolved by Amazon for me.

8. Beware the free offer. Do not go for any free sample offers that come up.

I did once. It did not turn out to be free.
It went from a free offer, to a $1.95 postage, to $11.95 when it was transacted. I rang to cancel and was told I could not. If your allowed the transaction to continue you were then slugged $68.00. I rang my bank, who cancelled the transaction, and issued me with a new card. In 11 years of buying online it was the first time I was scammed.
By following this advice you should be able to use your credit cards online and not become another victim of Identity fraud.
Author: Rick Adlam Mr Mortgage