Identity theft is the term used for the illegal and unauthorized use of one's private information. A perpetrator can attempt to obtain private information from you to do all sorts of things in your name. One can get a hold of your Social Security Number and use it in filling in information to do transactions over the internet. One can get hold of your credit card number and expiration date and use it to register into all sorts of services and memberships.
This sort of information can be used by a criminal to place you in the scene of a crime, placing you under hot water. Identity theft is also done simply when one uses the name of an establishment or business for the purpose of getting credit.
Though the response to this sort of threat has been quite overwhelming, everyone is still in danger of being a victim to identity theft. Companies have taken measures like shredding all discarded data to make sure that nobody can gain or take information from their garbage. Security measures have made the bringing in of data-storing devices more difficult. These same measures also ensure that people leave data at work instead of bringing them home, vulnerable for anyone to see.
Unfortunately, it takes a lot of money for a company to secure its secrets, and the personal information of its employees. Many companies simply cannot make it feasible to purchase all sorts of biometric devices and other electronic security measures. So instead of making this approach, companies have the option of applying for credit protection services. Instead of providing literal security guards and equipment, these services ensure that the information used in and out of the company is used only by the company. Credit protection services have all sorts of legitimate establishments as partners, and these entities would serve as watchdogs that would monitor and notify the company whenever a perpetrator attempts to use information related to the company.
The service of credit protection does not only cater to companies. Credit protection services are also available on a smaller scale, for individuals. Using the same logic, credit protection for consumers is usually employed to make sure that information is used only by the people who authorize it. One of the many strategies that credit protection services have involves communication: Whenever your credit card is used, or whenever your social security number is included in an application form, the partnered credit firms would notify you. Once they do notify you, you will then give the final say regarding a certain transaction. If you refuse, or if you mention that you never gave the go signal for the transaction in question, these credit firms would then make a trace to find out who tried to use your identity.
Credit protection services keep their clients constantly updated regarding any alerts or attempts of identity theft and other familiar activities. Additionally, these services would give the clients reports on a regular basis, and usually they deliver whenever their clients ask for one. Credit protection services are slowly growing to give more and more people less reason to worry whenever they make transactions.
One way to defend yourself is to be very careful about your credit card information. The other is to use virtual credit cards. A virtual credit card is a prepaid card that functions like a real credit card. It can be used for shopping at websites, Internet shops and web stores where they accept payments with credit cards.
The Internet is generally a safe place to shop but there are always undesirables lurking in the shadows waiting to pounce on some unknowledgeable Internet shopper. Using this type of credit card is one of the most practical ways to protect yourself from these shadowy figures.
A virtual credit card helps you to shop on the net with a throwaway credit card number that is single use and valid for a month or two. With a virtual credit card you can protect your credit card account from being tampered.
This is because hackers find it near impossible to tamper with your virtual credit card as you use a different card number each time you shop online. Even if the fraudster gets hold of your virtual credit card number, it will not be of much use to them as they expire quickly.
A virtual credit card is sent virtually via your e-mail address. You receive a 16-digit virtual credit card number along with a 3-digit security number. The processing is usually complete within one to four days after the company receives the payment.
One caveat is that you must utilize the credit amount within the required period. If you do not do so, the amount will expire as soon as the card expires. All well-known credit card companies provide virtual credit cards. The credit provided to you is limited to the amount for which you apply.
For additional security purposes, if your card is lost or stolen, you are protected, as you would be if you had a normal credit card.
There are some places where a virtual credit card might not work. For example, you might not be able to pick up theatre tickets, make car or hotel reservations or book hotels with virtual credit cards.
No card can guarantee that it will work for all merchants as there are millions of merchants using their own credit card acceptance policies. So even though you may have a balance in your account, there is a minute possibility that the card might be denied due to the policies followed by different merchants.
Despite the fact that a virtual credit card is comparatively safe, you must take certain precautions with its use. Do not share your card numbers with anyone. Do not store the card details in the computer or in your e-mail, especially if you share your machine with anyone. When you enter the card details online, you must ensure that the page is a secure page. If you are asking a website just for information, it is not necessary for you to put in your card details. If they ask for it, sign out immediately.
Virtual credit cards do offer some additional security benefits over traditional credit cards but proper use of your regular credit card should negate the need to apply for a virtual credit card.
Both Puripong Koomsin & Anthony Samuel are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.