Recent events and reports in the press have shown just how vulnerable your personal details can be. Stolen by Internet thieves, discarded in rubbish bins by banks or scammed by emails encouraging you to confirm your details here, there are plenty of ways that the unwary consumer can be parted easily from their money. Credit card transactions on the Internet have increased rapidly as high street sales crash. So just how safe are your details when using your credit card online?
Surprisingly enough, safer than you think. Despite the headlines of credit card scams and identity theft, it is actually quite safe to use a credit card to make purchases online as long as you follow a few basic guidelines and exercise a little caution. There are plenty of precautions you can take to protect yourself against the scammers and even genuine companies that go out of business before you receive your goods or services after paying online with a credit card. Even some of the biggest companies are at risk, as clearly shown by the collapse of Britains third largest tour operator, XL Leisure, last year. So before you type your details in and press enter, there are a few steps to take first to protect your details.
The first tip is, ironically enough, always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 says that if something does go wrong the credit card company is jointly and severally liable with the retailer. This covers transactions from 100 up to 30,000 and means that if the company does go out of business before you receive your goods, you can claim the money back from your card issuer. A court ruling has determined that this act also applies to purchases from overseas companies, which is particularly useful for online shoppers. However, the regulations may not apply if you have made a purchase through PayPal or other similar payment systems. Debit card transactions do not have the same kind of protection and are more at risk in the event of something going wrong.
Before you log on, check your computer. If you do not have up-to-date anti-virus software and a firewall installed, your computer is vulnerable to attack from spyware, which can skim your details either through a virus or by counting the keystrokes you make as you enter your details. If an email (even one that appears to be from your bank) asks you to confirm your details by clicking on a link, the chances are that it is a phishing email sent to the unwary consumer and designed to part them and their money surprisingly quickly. Your bank or credit card provider will never ask you to provide sensitive details by email or phone, so any email that does ask for this kind of information is a scam.
Check your computer before and after you log on to ensure that your security systems are up to date and adequate. If you do not have anti-virus software and a firewall installed, your computer and consequently your credit card details are vulnerable to attack from spyware, which can skim your details by counting the keystrokes of passwords and other sensitive information. If an email asks you to confirm your details here by clicking on a link, there is a very good chance that the email is a scam, as a bank or credit card provider will never ask you to confirm your details either by email or phone. Delete these phishing emails unopened, or you could suddenly find your bank account or credit card funds draining away very quickly. Keep all passwords secure and never use the same password for all your Internet activities. Once that password becomes known your entire system (including your credit card details) become vulnerable.
Look for two indicators when working online to show that a site is secure. The first is the inclusion of the letter s in the URL address (a secure site will start with the prefix https) and the second is a padlock icon in the bottom right hand browser frame on your screen. If either of these indicators are missing, the site is unsecured and so are your details. Finally, check that the company you are buying from actually exists in the real world (with a real address and telephone number) and doesnt just exist in cyberspace. By following these few simple guidelines, you can be sure that your credit card details will remain secure and that there wont be any nasty surprises the next time you receive a statement.
Surprisingly enough, safer than you think. Despite the headlines of credit card scams and identity theft, it is actually quite safe to use a credit card to make purchases online as long as you follow a few basic guidelines and exercise a little caution. There are plenty of precautions you can take to protect yourself against the scammers and even genuine companies that go out of business before you receive your goods or services after paying online with a credit card. Even some of the biggest companies are at risk, as clearly shown by the collapse of Britains third largest tour operator, XL Leisure, last year. So before you type your details in and press enter, there are a few steps to take first to protect your details.
The first tip is, ironically enough, always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 says that if something does go wrong the credit card company is jointly and severally liable with the retailer. This covers transactions from 100 up to 30,000 and means that if the company does go out of business before you receive your goods, you can claim the money back from your card issuer. A court ruling has determined that this act also applies to purchases from overseas companies, which is particularly useful for online shoppers. However, the regulations may not apply if you have made a purchase through PayPal or other similar payment systems. Debit card transactions do not have the same kind of protection and are more at risk in the event of something going wrong.
Before you log on, check your computer. If you do not have up-to-date anti-virus software and a firewall installed, your computer is vulnerable to attack from spyware, which can skim your details either through a virus or by counting the keystrokes you make as you enter your details. If an email (even one that appears to be from your bank) asks you to confirm your details by clicking on a link, the chances are that it is a phishing email sent to the unwary consumer and designed to part them and their money surprisingly quickly. Your bank or credit card provider will never ask you to provide sensitive details by email or phone, so any email that does ask for this kind of information is a scam.
Check your computer before and after you log on to ensure that your security systems are up to date and adequate. If you do not have anti-virus software and a firewall installed, your computer and consequently your credit card details are vulnerable to attack from spyware, which can skim your details by counting the keystrokes of passwords and other sensitive information. If an email asks you to confirm your details here by clicking on a link, there is a very good chance that the email is a scam, as a bank or credit card provider will never ask you to confirm your details either by email or phone. Delete these phishing emails unopened, or you could suddenly find your bank account or credit card funds draining away very quickly. Keep all passwords secure and never use the same password for all your Internet activities. Once that password becomes known your entire system (including your credit card details) become vulnerable.
Look for two indicators when working online to show that a site is secure. The first is the inclusion of the letter s in the URL address (a secure site will start with the prefix https) and the second is a padlock icon in the bottom right hand browser frame on your screen. If either of these indicators are missing, the site is unsecured and so are your details. Finally, check that the company you are buying from actually exists in the real world (with a real address and telephone number) and doesnt just exist in cyberspace. By following these few simple guidelines, you can be sure that your credit card details will remain secure and that there wont be any nasty surprises the next time you receive a statement.
About the Author:
Henry Jones writes for various popular websites and specialises in financial based writing. You can find further information on credit cards online here.
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