8 Ways to Increase Online Credit Card Security

By Eva Norlyk Smith, Ph.D.

Despite rising security efforts, internet credit card fraud remains a leading threat. According to experts, the cost of cyber crime to the global economy may soon reach $1 trillion in losses – and the cost to the U.S. alone is estimated at nearly $8 billion.

While government officials and law enforcers are working hard to make the cyberspace more secure for consumers and merchants alike, individual cardholders play the most important role of all in safeguarding their credit cards. Here is a list of things you can do to make your online experience safer.

1. Shop only reputable websites. When shopping online, deal only with reputable sites that display the security-enabled https:// pages. Also look for the security padlock at the bottom of the browser bar, which signifies that you are on an authenticated website.

2. Never click on links in unsolicited emails. Phishing emails are getting more and more sophisticated. Common schemes are emails confirming a password change that you didn’t make to an account that you may or may not have. These are designed to make you panic, so you’ll click on the links in the email. Don’t! Instead, immediately delete the email, or if it is from a company you do business with, call the company for more information.

3. Don’t give out your personal information. Don’t respond to online solicitations for your credit card or personal information even if the request appears to come from your bank or credit card company.

4. Keep your antivirus and personal firewall software up to date. Fraudsters spin out new malware every day, and the only way to protect yourself is to keep your subscription to an antivirus program like Norton Utilities active, so it is automatically updated as new threats become known.

5. Watch out for spyware. Spyware programs can siphon off credit card numbers without your knowing while you are shopping online. To protect yourself, always keep an updated spyware program in addition to your computer virus protection.

6. Set your Windows Security Center for automatic updates. If you are a Windows User, make sure your Security Center is set for automatic updates. This will ensure that your computer automatically downloads security patches from Microsoft, which are issued frequently in response to new cyber threats.

7. Monitor credit card bills. Despite your best efforts, your credit card information could be compromised because of a security breech at retailer or a credit card processing company. For this reason, your last line of defense is to study your credit card statements carefully each month, even for small charges. If you discover any unauthorized transactions, report it to the credit card issuer immediately.

8. Review Your Credit Report Regularly. Monitor your credit report regularly to protect yourself against identity thieves opening accounts in your name. You can download a free copy of your credit report once a year at AnnualCreditReport.com. If you prefer to review your credit report more often, enroll in a credit monitoring service, which will automatically keep you updated on any changes to your report.

If you do fall victim to credit card theft, don’t panic. Consumers are generally not held liable for fraudulent charges. However, you’ll have to deal with the time-consuming and complicated task of reporting the theft, making sure charges get removed, and restore your credit and good name.

Immediately report the theft to the credit card issuer. Then immediately contact three major credit bureaus and ask them to place a fraud alert on your credit report, to help avoid further misuse of your credit card.

Equifax: (800) 525-6285;
Experian: (888) 397-3742; and
Trans Union: (800) 680-7289.

Published: January 2, 2010