How will you react if you get a call one fine day from the collection agency stating that you are liable for charges on your account that have not been made by you? You will definitely get angry, lambast the credit card company and take the legal course. The damage however will be done by that time, and your credit rating will have taken a beating. What you will be doing is losing your time and money pursuing a legal case, while the person who has scampered with your credit card money will be making merry and waiting for his next strike.



Identity theft is an emerging crime where some one gets hold of your private information and assumes your identity. He applies for a credit card in your name and wreaks havoc with your credit file and personal finances by using the card for purchases and online transactions. He can even process an address change, ask for a credit line increase, do balance transfers in your name and mess your credit rating. In the end, you are the one who has to pay, literally speaking. Taking care of your credit card and keeping confidential information private is really your responsibility. Here is how you can ensure that your credit card information is kept secure and confidential:

1. Subscribe to a credit monitoring system: This is the best bet against any kind of identity theft. For a nominal amount, you get a service which alerts you of any possible untoward changes which happens with your credit file. For example, Citicard has started with the City Credit Monitoring System which alerts you of any changes or discrepancies in your credit file so that you come to know that the change like an address change or an application of a credit card has been initiated by you and not somebody else. This way you can be secure that your credit rating is not affected and you stay clear of any identity theft on your account.

2. Online security: The online route is another way by which miscreants can cheat you by using your credit card number and expiration date to make an online purchase. At other times, a nasty hacker can sneak into the online store's website and steal your credit card information either as you key in the details or from the customer database. However online shopping is the best place to shop in terms of convenience and affordable prices. So how does one shop freely online and without any worries about being robbed? The best way is to shop from a reliable and ‘secure' site. Go for a website which asks you to re-enter your personal details every time you shop rather than the one which recommends you to store the information for convenience later. The extra effort of re-entering details is agreeable for the privacy of your personal information.

3. SSL technology: Secure Socket Layer (SSL) technology is the best security online. The shopping and business websites online are kept secure due to a program which encrypts the data in such a way that only you can make out what you are doing on a given page. It is encrypted in a machine read level which cannot be comprehended by any other person besides you and the computer. Your credit card details are extremely secure and there is no way for anyone to get any access of your valuable information. To find out if your online shopping website has the SSL technology is by looking at the URL or the webpage address. If it begins with "https://" instead of the usual "http://", you know that the page which you are keying in your details is secure. The extra “S” in the https stands for ‘Secure.'

4. Verification code: The three digits at the back of the card above the signature panel on most credit cards make it known to the online retailers and tele-shopping representatives that the card is with the right person.

5. Shred vital information on paper: Make it a point to shred every bit of credit card information, pin numbers, promotional mails and checks after you have used them or made a note of them. This will ensure that your credit card information is secure.

6. Authorization code: You get an authorization code for every payment or shopping that you do online or over the telephone. This code is something which only you have knowledge of.

7. Make sure that your unused accounts are indeed closed: Check with the credit card companies and credit reports to ascertain if some of the credit card accounts that you do not use have indeed been closed. If they are still lying open, they can be a potential source for identity thefts.