Just last night I was at my friend’s studio for a band rehearsal, and while waiting for him to get done since he was still recording this Korean Kid who was singing in the adjacent vocal booth we got to talk about gear and equipment and where to get the stuff. We are both recording enthusiasts, however the studio that their family runs is a huge and full service recording studio where whole bands can record; while I run a small home recording bit for my radio commercial production hobby and well, other simple home recording needs. But, if there is one thing we have in common we do use M Audio Professional Studio Speakers and use good quality condenser microphones for recording voice.
Speaking of condenser microphones, it was this item that got us talking about where I buy my stuff, since they are in the music instrument distribution business they have suppliers all over sending them stuff, while small time me, just go online and try to get stuff at hugely discounted prices using my credit card.
His immediate reaction upon hearing how I make purchases was apprehension, because it is the common belief that purchases online using your credit card is not safe.
Well, to be honest, making purchases online somehow carries the same kind of risks for off line purchases if you do not take necessary precautions to protect your credit cards, and your identity.
This post is just about that…. how to protect yourself from credit card fraud and identity theft.
This is very important for those who have or are planning to have online businesses because almost all of your transactions are going to be done via credit card, either to make or receive payments.
The internet of today actually has come a long way from the early days where it was much more dangerous to be making online purchases, as there were fewer security mechanisms, lesser checks and well financial or payment facilities that were buggy or had loop holes in the system. Thankfully today’s payment facilities are more secure.
What is identity theft?
Identity theft is when your personal information is stolen and used illegally, to make any sort of transaction online in your name and without your knowledge. Identity theft is still one of the fastest growing crimes in America, and is a smart criminals game; as online institutions continue to safeguard their systems, these smart criminals also continue to find ways around such safeguards.
The risk of identity theft is actually similar for both online and off line purchases, because it is simply about getting your personal information, whether it was retrieved through fake websites or solicited through deceptive email… or taken from the trash, like your credit card records and billing statements for example.
So the risks are actually the same, whether online or off line, you have to to protect your personal information.
There are three methods used to get your personal information.
1. Phishing
Phishing scams involve the sending a fraudulent email, with the sender claiming to represent a well-known company, that would require you to reply and disclose sensitive personal information such as credit and debit card numbers, account passwords, or Social Security numbers. Phishing can also be carried out in person, over the phone, through fraudulent pop-up windows, and websites.
Some people actually fall for this because, the perpetrators send out a well crafted letter, often with the company’s letter head or logo. The victims are those who didn’t do proper checking or verification, and are quite trustful especially if the company is one that the individual has had prior dealings or transactions with. So if you do receive such an email, suspicious or not, it would be best to check by probably actually calling to verify. Do not call any numbers provided on the email instead try to find numbers in the phone book, to that said company. If it is a company you have had past dealings with, contact their customer service department and verify if there has been any email or postal mail sent, requesting for information.
Bottom line is, most companies reiterate to its customers that they never request for personal information over email or over the phone.
2. Spoof Site
A spoof site is usually used in tandem with a phishing email. A spoof site is a website that mimics an established or well known website which is capable of performing transactions that would require you to enter personal information.
is a form of fraud designed to steal your identity. It works by using false pretenses to get you to disclose sensitive personal information, such as credit and debit card numbers, account passwords, or Social Security numbers.
One of the most common phishing scams involves sending a fraudulent email that claims to be from a well-known company. Phishing can also be carried out in person, over the phone, through fraudulent pop-up windows, and websites.
3. Computer Hacking
This is the process of breaking into your computer in order to get pertinent information about you. It is recommended to keep your computer behind a firewall, always keep your security patches and OS up to date, plus make sure to use software such as anti virus, anti spyware and trojan protection.
There are many sites today that implant spyware in your computer, and that happens by simply visiting their site. Spyware does exactly as it is called, it spies on your actions, your transaction and almost everything you could do on your PC.
Those three are most common online, however some perpetrators actually scout victims by scavenging through trash bins to find old bank statements or other documents with personal information.
Here are ways to prevent identity theft.*
5 ways to thwart identity thieves.
- Guard your information, online and offline.While news headlines make identity theft seem like it’s mainly an online issue, you should recognize that there are also very real offline dangers.
- Trash doesn’t always end up in the dump. A recent study conducted by Javelin Strategy & Research suggests that you are in greater danger from identity thieves rummaging for important papers in your trash or breaking into your mailbox than from online theft.
- Stolen wallets can become stolen identities. The Federal Trade Commission Identity Theft Survey Report estimates that 14% of identity theft is a result of stolen wallets, checkbooks, and credit cards.
- Offline precautions. To protect yourself, consider shredding documents containing your personal information, such as account statements, locking your mailbox, and emptying your wallet of anything you don’t absolutely have to carry.
- Don’t respond to email or phone calls asking for your account information.
- Phishing emails. Phishing (fake) emails are made to look like they’re from legitimate companies but are actually from identity thieves. These emails warn you of account problems or other urgent issues in order to trick you into clicking through to a spoof website or calling a fake customer service number.
- Spoof websites. A fake website is meant to mimic a website from a well-known company. It will ask you to enter your user name and password or other account information. Once you do this, you’ve given your information to someone who might use it to do you harm.
- Genuine PayPal email. We will never ask for your password or financial information in an email. You should only share information about your account once you’ve logged in to https://www.paypal.com directly from your browser.
- Phone Calls. Beware of unsolicited phone calls claiming to be from customer service centers and requesting that you provide sensitive personal information. You should hang up and call the number on the company’s website.
- Pay safely.People have become smarter about sharing their Social Security numbers – but often don’t think twice about sharing other sorts of sensitive information during transactions.
- Checks. When paying with a check, you’re handing a piece of paper with your bank name, account number, address, and signature to a stranger. Industry analysts report that check fraud is a significant problem.
- Online payment systems. When using online payment systems like PayPal, you get a secure way to complete a transaction. With PayPal, you can pay without the merchant ever seeing your credit card or bank account number. This significantly limits the information that you share in a financial transaction.
- Protect your computer.
- Software protection. The key to securing your own computer is to use protective software and keep it up to date. Make sure that you install all security patches available from the developer of your operating system. Run antivirus software to check incoming emails and update virus definitions frequently. Set up a firewall to prevent intruders from getting into your network or computer.
- Password protection. Always choose strong passwords to protect accounts. Mix upper and lowercase letters. Use symbol characters. Create unique passwords for each one of your accounts.For more information, read PayPal’s Keeping Your Passwords Safe.
- Stay alert.
- Act quickly. The longer a breach goes undiscovered, the more costly it becomes. According to the Federal Trade Commission, your chances of suffering significant financial damage from identity theft are significantly lower if you discover the breach within six months of its occurrence. After six months, you are more likely to lose money or spend hours untangling a truly difficult situation.
- Get some free security help. Sign up for Equifax Credit Alerts for PayPal users so you can be notified of possible fraudulent activity.
- Monitor your accounts frequently. Log in to your PayPal account and also check credit card activity and balances often to look for suspicious activity. **
Finally if you cannot help but make a purchase online… use a credit card with a relatively small credit limit, that way if something does go wrong, it won’t be a big amount to lose. Try not to use a credit card with a huge credit limit, because when that card’s particulars gets stolen and used… and maxed out, that is surely an even bigger headache.
Portion in (* **) asterisks is taken from Paypal.com
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