RSS feedAs credit cards becomes more and more common the security of the plastic money becomes a matter of concern.
The security of a credit card depends on the privacy of the number on the credit card. In other words, if a person other than the owner reads a credit card number, there occurs a probable compromising of security. This could mean that the security is low since in a transaction everyone will view the number.
Merchants often accept numbers of credit card devoid of extra mail order verification, although recording of delivery address will be made.
For instore purchases merchants accept credit card numbers, resulting in easy fraud to take place. Therefore requirement of the card and a signature is a pre requisite most of the time. A fast cancellation of a stolen card will prevent the fraud-taking place. The level of security for purchase from the Internet will be as same as that of mail order. Many opportunities for committing fraud are available due to a low security system present in credit cards. A large black market scenario is created for credit card numbers that are stolen and used quicly before cards get reported to be stolen.
The credit card companies are having the goal of reducing rather than eliminating fraud.
There are many ways of obtaining credit card information, which are stolen for carrying out Internet frauds and the simplest of it being information that can be copied from retailers irrespective of whether it is online or offline. Even though there have been efforts for improvement of security for purchasing by credit cards, poorly implemented merchant card acquisitions have led to security holes.
An example of this being websites that use SSL scripts for encryption of card numbers may email it from web server to somebody who is processing the details at a terminal. Humans create security risks wherever the detail becomes readable before the bank does the processing.
Another option for the protection of a credit card number is by Control Payment Numbers. They are fictitious numbers that will be linked to real card numbers, which are valid only for a short period with a single merchant.
Prosecution of criminals engaged in frauds using credit cards in United States have been carried out by Federal Bureau of Investigation and U.S. Postal Inspection Service. But resources are not available for the pursuing of all the criminals. Generally federal officials have been prosecuting a case that exceeds a value of US $5000.
Reduction in credit card fraud could not be proven eventhough three new improvements to common networks of credit cards are introduced. Foremost of that is an introduction of a verification system that uses 4-digit pin number, which only the cardholder will be knowing
Second is the introduction of smart cards that are tamper-resistant intended for making difficult the act of forgery. Third is a digital code, which is of three or four digit on the back of the card to be used in card not present transactions.
There are some credit cards that people apply for just for the sake of getting a credit card. The more credit cards they have the more they can spend. But some people actually apply for certain cards in order to get the most out of them. For example, the credit cards that offer airline miles. The people that travel a lot and spend a lot this credit card goes hand in hand. The more money you spend the more airline miles you can earn. But comes the good comes the bad, with some of those airline miles you can really accumulate them but at the same time some cards have blocked dates. In the summer it is pretty hard to travel because that is when airline fares are at the highest. So airlines don’t want to give away free trips when the price of a ticket is so high.
Then there are the cards that are called Rewards cards. These are cards that offer free gas or free Amazon.com gift certificate when you earn enough point. Unlike airline miles these points are a bit harder to get ,so the more you spend the more points but it seems like forever to get to the points. For example, if you have a Chase credit card, they offer a reward that if you accumulate 2500 points then you get an Amazon.com $ 25 gift certificate. The same premise with gas cards, you need a lot of points that may take months to get just to get the rewards. But some people like that. They like working towards something. The key is to spend the credit to get the points but you have to pay the balance down as well.
There are credit cards that offer a low interest rate when you transfer the balance. These are great if you have a high balance on a high interest card. But make sure that the low balance stays a low balance and that after 6 months the rate goes up. Read the fine print because all offers so say something about the interest rate, But if you can pay down what you can from a low interest site then by all means switch. They will save you money no matter how long there is an interest rate that is low.
Students perhaps get the best deals on credit cards. The credit card companies know that no student in the world is going to turn down a credit card. So what they do is they offer students low apr’s and then the students sign the application and they spoon have their first credit card . Often student credit cards will offer cash back or money towards their tuition. But you should look into how many credit card companies offer which types of rewards and which ones have the best interest rate.
The best thing about credit is that even though you have bad credit and you may still apply for credit cards. These cards start out with a low balance and as you pay more and more of the balance they will increase your credit . It is a great way to do credit repair and reestablish your credit at the same time. There are so many different credit cards that you can choose from but be smart and only choose what cards can make a difference to you. Choose a card with low interest and great rewards. Always remember that in some instances you have to spend more to get more then you have to pay more in order to keep up with the balance so you don’t fall into trouble. Be sure to chose the right one that best fit your needs from select various credit card offers......
Not only is it a huge hassle when crooks run up big bills in your name.
A Better Business Bureau survey found the average victim spends $442 and 40 hours -- or the equivalent of an entire workweek -- straightening everything out.
But you may be more vulnerable to identity theft than you think:
* Seniors aren't the most common targets. Consumers in their 20s and 30s are.
* Only 10% of all stolen information came from computers or the Internet. The vast majority was pilfered from wallets, purses, checkbooks, credit cards, credit card receipts, mail or garbage.
* Nearly half of all identity theft is not perpetrated by faceless, sophisticated gangs. It's committed by the victims' friends, neighbors, relatives, family members or in-home employees.
With that in mind, here's a checklist on how to be a tougher target:
Smart Move 1. Secure your Social Security Number
Carry a Social Security card only when it's needed, such as when you're applying for a job, dealing with a government agency, or opening a new bank account. Otherwise, leave it at home; better yet, leave it in your safe deposit box.
Never give your Social Security number out over the phone.
Don't put Social Security numbers on checks.
Smart Move 2. Secure your credit cards
Carry only one or two credit cards at a time.
Print "ASK FOR PHOTO ID" on the signature line of your credit cards. You'll have to pull out a driver's license more often, but that makes it much harder for anyone else to steal and use them.
Have all the information needed to report a lost or stolen credit card readily available in a safe place. Our "Essential info work sheet" is a good place to write down the account number, expiration date and 24-hour emergency phone number you need to call. Or make photocopies of the front and back of each card. Just make sure all of the numbers are legible, especially the emergency phone number, which is likely to be in the fine print.
If a credit card expires and you don't receive a replacement, call the credit card company.
Protect your ATM and computer passwords. If you can't remember them and must write them down, disguise them as phone numbers for mythical friends or relatives. But don't make it obvious. Listing phone numbers for Joe Password or Peter Pin won't really protect much.
While most receipts only reveal the last four or five digits, watch out for any that print the full number. Take special precautions to safeguard and destroy those receipts.
Cancel any credit cards not in use. Don't just cut up the cards. Call or write the company and tell them to close the account.
This could lower your credit score by reducing your total amount of available credit. That's one of the 30-or-so factors the formula measures is the percentage of available credit you are not using. But this also reduces the amount someone can steal.
Watch for unauthorized charges on every bill. Make it easy to check whether a suspect expenditure is legit by saving all credit card receipts in a special envelope.
Notify every credit card company as soon as you move. Don't allow monthly statements or new credit cards to go to an old address.
Smart Move 3. Better shred than read
Buy a shredder and shred every document that contains any sort of information -- personal or financial -- that could help a thief "become you" long enough to run amuck through your credit.
This includes all those credit card and mortgage refinancing offers. Get a crosscut shredder that cuts the paper two ways. They're more expensive but they're worth it.
There are also shredders that will chop up plastic, such as credit cards and CDs.
Smart Move 4. Use your computer more -- and more safely
Since only 10% of identity theft is based on information stolen from computers, use your computer for financial transactions.
If your company offers automatic payroll deposit, sign up for it. Enroll for online bill payments, too. Have bank and credit cards statements sent to you by e-mail.
To make those transactions more secure, make install a firewall as well as anti-virus and spyware programs, and update them regularly.
Make sure your home wireless network is encrypted, otherwise your neighbors -- or anyone who parks a car in front of your home -- could access your network and hard drive from a laptop computer.
Don't respond to suspicious e-mails. Banks and credit cards don't send e-mails asking you to update or confirm information that they already have. When in doubt, phone the bank.
While it's not possible to "shred" your computer's hard drive, you can wipe it clean before selling or discarding it. Just hitting "delete" will not do the trick. The data are still there, and relatively easy to get at. There are programs that will actually wipe your hard drive.
Deal with online merchants that have a privacy policy, and look for the Better Business Online seal or the Trust-e symbol that shows that the seller has been independently audited.
Before charging purchases online, make sure you're on a secure site -- one that starts https instead of http -- or that the charges are handled in an encryption mode.
Smart move 5. Snail mail carefully
When paying a bill by mail, or sending a credit card number on an order, drop it into an actual mailbox. Don't leave it for your letter carrier to pick up. Crooks steal mail out of mailboxes.
Smart move 6. Know your credit report
Check your credit report for any credit activity or credit cards that are not yours. If you have five credit cards and your credit report lists eight, report the bogus cards right away.
You can get a free copy of your credit report every year from AnnualCreditReport.com. There are three major credit reporting agencies and they all carry pretty much the same information.
Stagger your free reports so that you can get one of them every four months. Or pay to subscribe to any or all three of the services so you can monitor your credit report whenever you want to.
They are:
* Equifax at www.equifax.com
* Experian at www.experian.com
* TransUnion www.transunion.com