Several major credit card issuers are offering customers the option of shopping online with virtual, single-use credit card numbers, which expire within one or two months.
The aim? To thwart hackers by using a different, random card number every time you shop online.
There's no value to the number to any hacker because they can't take it anywhere else on the Web.
An online purchase made with a virtual card number shows up on a customer's card bill just like any other purchase. Some issuers even list the virtual card number next to the charge.
Issuers hope virtual, throwaway credit card numbers will encourage more consumers to shop the Web. The No. 1 reason folks have shied away from online shopping is the fear that their personal information, including credit card numbers, could fall into the hands of thieves.
It's a worrisome thing for consumers.
And those fears are justified.
There has been a lot of fraud on the Internet. And it's not so much the damage to their wallets that worries folks about online shopping -- card issuers promise zero liability for any unauthorized online purchases -- but the potential damage to their good names.
Swiping a credit card number and other personal information may be all an online thief needs to steal your identity. And sorting out the mess a thief makes of your credit report falls squarely on a consumer's shoulders.
---
Common sense fraud-avoidance tips
With or without a virtual credit card number, you can take steps to minimize online fraud by using some old fashioned common sense while shopping:
Find out if the Web site you are visiting has a privacy policy. Know how your personal information will be handled.
Make sure your transactions are handled through a secure or encrypted mode. Most merchants use SSL, the secure socket layer protocol. You will know you're on a secure site if the Web page on which you conduct your transaction begins with "https:" instead of the usual "http:".
Print out privacy policies, warranties, price guarantees and other important information.
If you're shopping with a merchant for the first time, look for the Trust-e symbol or a Better Business Bureau online seal, which indicate the seller has been independently audited and deemed trustworthy.
Monitor your credit card account frequently. Keep records of all online transactions. If you find a suspicious transaction on your bill, contact your credit card company immediately.
Steer clear of spam e-mail offers. Don't even respond.
Buy a shredder and destroy bills, pre-approved credit offers and other documents with personal information before throwing them out. Not all identity thieves are high-tech hackers. Some use low-tech methods, such as dumpster diving, to swipe personal information.
Try International Virtual Prepaid Credit Card