Sunday, March 15, 2009

Are Virtual Credit Card Numbers Safe Today?

By Kermil J. Fogarth

Just having received the bill for a credit card I haven't used since receiving it several months ago, imagine my surprise to see that I had made some purchases. Now, bear in mind that this card has been in my wallet since I received it seven months ago and still has the activation sticker on it. Yet, I managed to make online purchases of a train ticket in Washington DC, sign up for a monthly MLM program and purchase another travel ticket on hotwire. The card was received seven months ago and the charges only started in November. Is there any way this could have been prevented?

Throw away credit card numbers can be of some use here but probably wouldn't have prevented the above from happening as somehow someone got my name and actual credit card number. But for online shopping protection using virtual credit cards may be helpful - or they may lead us to a false sense of security. Just because I use a virtual card only once doesn't mean someone can't get the real information to use for their benefit.

This can be compared to the use of a disposable camera to prevent loss or damage to your expensive camera while you are traveling. A virtual credit card number can be used to prevent loss when making online purchases. In this case, the virtual credit card number is invalid after one use.

Since credit card fraud is so widespread we aren't surprised when it happens and the card companies are looking for ways to cut their losses. This must be done without inconveniencing the ability of their customers t make purchases either in person or online while protecting vital information. They are hoping that virtual card numbers will be the solution.

Virtual card numbers are used for online purchases the same way regular credit cards are but the number is only temporary. The number is generated on demand and issued as a replacement for the actual card number to be used for a short time period. Personal information is not sent to the vendor and these numbers may be single use or they may be used for multiple purchases for a limited time before the number becomes invalid.

Protecting the real number from felonious use is the objective with virtual numbers. Should a computer hacker gain access to credit card data from a secure processing center, your account number would be protected. When they attempted to use your virtual number they would be denied credit.

Everyone expects their card information to be safe and secure when making a purchase online. But there is the possibility, however remote, that an employee of the online merchant would sell card information to criminals. Of course this would make them a criminal as well but some people will do anything if the price is right and there is little possibility of them being caught.

Virtual credit card numbers protect your valuable information during online purchases. If a virtual number is stolen it is worthless or becomes worthless in a very short period. When making several purchases with your credit card a month you may realize a real benefit from using a virtual card number for protection and security.

About the Author:

No comments:

Post a Comment