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?
The latest trend is toward disposable credit card numbers but that probably couldn't have prevented those bogus charges on my card as the thief was using my name and the true credit card number. For online shopping protection the use of virtual card numbers may be helpful. Hopefully they won't lead to a false sense of security fostered by one-time use of a virtual number. Use of a virtual number wouldn't have prevented the thief from getting the real information as happened to me.
Just like using a disposable camera instead of your expensive camera while you are traveling to protect from loss or damage, you can use a virtual card to prevent loss when purchasing online. With a virtual credit card number, the number is discarded 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.
The use of virtual card numbers for online purchases work the same way as a normal card number except they are only valid for a short time period. These numbers are issued as a short term replacement of the actual card number and are only valid for a short period of time. True card information is not sent to the vendor and these numbers can be single use or they may be used for multiple purchases over a short time period before it is no longer valid.
Virtual card numbers are intended to hide the real number from those who wish to use your information for their purposes and possibly damaging your credit. Should a secure processing center be hacked by someone wanting credit card information, your use of a virtual number would render your account safe. If they used your virtual number the result would be a denial of credit.
You expect that your card information is safe and secure at secure sites during your purchase. There is however the possibility that an employee of an online merchant could sell credit card information to criminals. While this in itself is a criminal act some people are willing to do anything if the payoff is high enough and there is little chance of them being caught.
Virtual credit card numbers biggest benefit is from protecting your valuable information online. If such a number is stolen, it is or becomes worthless in a short time. If you make several purchases with your credit card per month you may see a real benefit from using virtual card numbers to assure all your transactions are secure and your information protected.
The latest trend is toward disposable credit card numbers but that probably couldn't have prevented those bogus charges on my card as the thief was using my name and the true credit card number. For online shopping protection the use of virtual card numbers may be helpful. Hopefully they won't lead to a false sense of security fostered by one-time use of a virtual number. Use of a virtual number wouldn't have prevented the thief from getting the real information as happened to me.
Just like using a disposable camera instead of your expensive camera while you are traveling to protect from loss or damage, you can use a virtual card to prevent loss when purchasing online. With a virtual credit card number, the number is discarded 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.
The use of virtual card numbers for online purchases work the same way as a normal card number except they are only valid for a short time period. These numbers are issued as a short term replacement of the actual card number and are only valid for a short period of time. True card information is not sent to the vendor and these numbers can be single use or they may be used for multiple purchases over a short time period before it is no longer valid.
Virtual card numbers are intended to hide the real number from those who wish to use your information for their purposes and possibly damaging your credit. Should a secure processing center be hacked by someone wanting credit card information, your use of a virtual number would render your account safe. If they used your virtual number the result would be a denial of credit.
You expect that your card information is safe and secure at secure sites during your purchase. There is however the possibility that an employee of an online merchant could sell credit card information to criminals. While this in itself is a criminal act some people are willing to do anything if the payoff is high enough and there is little chance of them being caught.
Virtual credit card numbers biggest benefit is from protecting your valuable information online. If such a number is stolen, it is or becomes worthless in a short time. If you make several purchases with your credit card per month you may see a real benefit from using virtual card numbers to assure all your transactions are secure and your information protected.
About the Author:
Kermil J. Fogarth has extensive finance information available at his website. For more credit protection tips.
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