|
Why is online more secure than in person? There are at least a couple of reasons. If the process goes directly through a processing gateway (automatic processing), then there is very little if no difference between online and in-person transactions. If the process is done through an employee (manual processing), then typically the online store only has one person or small department who is allowed access (or exposure) to your information, whereas when you are processing a card at a restaurant, almost any employee is allowed and able to handle your credit information. Also, consider that unless you are dealing with a well-known, nationwide store, most online stores are fairly small and owned by sole proprietors or an LLC. These owners put a lot of time, energy, and cost into establishing their store. To become the subject matter of credit theft would undermine these efforts. In-person stores, on the other hand, hire employees who have little, if any, stock in the success of the company.
Uninvited Thieves
Online purchases typically avoid most, and sometimes all, of the potential threats from so-called "trusted" employees. However, online purchases do offer a potential danger zone of their own: hackers. Credit card numbers and other vital information are almost certainly stored in a database somewhere. If that database is compromised, so is the credit card information it contains. Although, from what I have read and heard over the last 5-7 years, this happens far, far less than in-person theft. A lost or stolen purse or wallet is much more likely to result in attempted credit card fraud. Even if a hacker were to break into one of these databases, not only would the investigation be taken to a very high level of investigation (as opposed to a stolen purse or wallet or even identity theft), but there would also be hundreds to millions of others in line with you.
CISP: VISA (et al) is On Your Side
We have learned that automatic transaction processing is just as secure whether it is done online or in person. And based on the points made, manual transaction processing is typically more secure when done online than in person (again, at least at this point in time). There is one consideration, however, that can lower the defenses of a manual transaction done online. Typically, your credit card information is stored on a secure database, and an employee must transfer that information to the secure gateway. However, if the store saves any of your credit information on their local computer, then that leaves your information open to hackers on that computer. Unfortunately, short of asking, or unless it is mentioned in the store's FAQ, there is no way of knowing whether they do this. Although it is unnecessary for a storeowner to store this information, and it is technically against VISA regulations, it can certainly happen. If you do feel or find that your credit information is being stored by a store owner, be it in person or online, feel free to visit the VISA Cardholder Information Security Program (CISP) page located at http://usa.visa.com/merchants/risk_management/cisp_overview.html
Catching a Card
If a credit card thief tries using a stolen credit card at a store (online or in person) that uses manual processing, there are signs that can flag such an illegal transaction, which humans can catch. In person, there are photo and signature IDs that, when used, can flag the purchase. Online, an incorrect billing address, phone number, or even a returned e-mail can flag the process. With automatic transactions, the card is likely to be accepted without question, even if there are one or two small flags. In such cases, if your credit card or credit information is stolen, you can only hope that the thief will use a store that processes transactions manually.
Online Skeptics Are Still Online
Considering the number of people who are skeptical of making purchases online, it would seem that these folks are either not aware of a law that took effect on October 28, 2004, or do not write personal checks. The Check 21 Act has nearly guaranteed that your personal checks will be scanned into an electronic format, stored, and even transferred as necessary just like credit card information. You can find additional information on the Check 21 Act at http://www.ftc.gov/bcp/conline/pubs/credit/check21.htm
Security = Encryption
One of the most common precautions for purchasing online is to ensure that the Web page you are providing the information to is secure (encrypted). Depending on the browser you are using, secure pages will typically have a lock somewhere in the status bar. In addition, the URL (Web page address) will begin with HTTPS:// (Notice the "S" after the HTTP. The "S" means that the page is secure.) On a secure page, the information being sent is encrypted, that is, the information is made into a puzzle that is extremely difficult for anyone except the receiving computer to solve. Also, remember that credit cards are only one type of information collected online. Always ensure that Web pages are secure before providing Social Security Numbers and other vital account information, such as bank account information.
Aging is a Good Thing
Consider the number of years a store has been open for business. Check for their Sales and Use or Tax Permit. Even online, they should display one because if they are transacting business over the Internet, then that is their "place of business". Obviously, stores need to start out somewhere, but just take a little extra caution with stores that have been open for only a year or two. Consider calling them before ordering just to verify that there is someone on the other end.
Changing Names - Changing Favorites
When information is collected on every other Web site you visit, the sensitivity level of such information is diluted. Consider changing your favorite pet's name once in awhile. And the "First street you lived on" does not have to be the first street you lived on. Nor does it have to be the last school you attended. These are simply reminders and are sometimes easier for a stranger (or even a family member) to guess at than your password. Consider not using the real answers to these. They can be used as backdoors into your account.
Use Another Credit Card
Most people nowadays have more than one credit card. Select a card that has the least amount of credit on it to ensure that if something were ever to go wrong, you have the least to lose. You should also consider only using a credit/debit card from your primary bank account for larger and less-often purchases. If this card is swiped and used, it could leave you short for any legitimate transactions that have yet to clear, like your online bills. You could also set up a bank account solely for online purchases. If you use your primary bank, you can transfer money as needed to cover charges before they are made: Or just keep a very small amount (like $100) in that account at all times.
Temporary Credit Cards
Speaking of using another credit card for online purchases, some financial institutions now offer temporary credit cards with a set limit, a set time frame, or both. Contact your financial institution for additional information on temporary credit cards.
Outside the Box (or in another box)
Another idea for making online payments is to always use the same credit card for online purchases and keep an eye on that account on a very regular basis. Also, consider minimizing its use. You can also consider using an online money transfer service such as PayPal or Google Checkout (although these limit your purchases to stores that also use these services).
Information Storage
When purchasing online, you will most likely be asked to come up with a password for an "account" with the online store. At some point, perhaps even today, you already have far too many passwords to remember. In contrast, if you use the same password for everything, and that password is found out, you have even more places where you are vulnerable to theft. As you probably already know, writing passwords down and putting them in your purse or wallet is extremely risky, and you NEVER want to store your PIN numbers in the same location as your ATM/debit cards (that's like putting your password under your keyboard or a key under the mat). A safe-deposit box or fireproof house safe would be good but considerably less convenient. You might want to consider a password-storage application that can be found by visiting the Sponsored Links at http://www.google.com/search?q=password%2Bstorage. Using this method, you remember one password that will allow you access to all of your other passwords (so make it a long and complicated password). And if you store passwords in your cell phone, on a PIM, or on a laptop (although all are very dangerous), be sure to password protect those devices as well.
The Online Shopping Achilles Heel
Computer Security - Online Shopping Preventive Measures: If your computer is not secure, then neither might your online shopping. This article really applies more to folks who have already battened down the hatches on their computer by reading, "Security and Safeguards -- Virtual and Real-World". It provides additional information about online security and computer safety in general.
Keith D Commiskey, Owner
http://giftsforyou.biz - Crystal Figurines - Crystal Gifts
|
