Ways to ensure security and protection for your credit card:

• Data security standards: MasterCard and Visa has set 12 guidelines to ensure that credit card information of the customer is safe. There are strict regulations between the merchant and the credit card company to ensure that all information is kept confidential. The merchant is responsible for safeguarding information and can be held responsible for security compromises.
• Secure online account number program: there are credit card companies who help save your account number whenever you make any purchase online. They use a fake account number when giving it to the merchant. Once the credit card company verifies, it links your account to the charges for a particular purchase. In this way your true information is not disclosed to the merchant and is safe with the bank. The fake account number that is generated can be used for only one transaction.
• Matching billing and mailing addresses:  This is another security and protection measure conducted by online merchant. It requires you to provide both shipping and billing address and then matches to the records. It ensures you protection from online thieves who steal account numbers and ship their purchase to unrelated address.
• VeriSign SSL (security sockets layer) Technology: This is an encryption third party service that ensures online credit card security. The merchants are provided with a public key to encrypt information and a private key to decipher.

How can a consumer protect his own credit card?

As a consumer security and protection of your credit card is as much your responsibility, as it is the banks. Here are some ways to ensure security and protection for your credit card.

• You should protect your social security number as this can help to open a line to your credit card and cause fraud.
• You should destroy all solicitations. You should shred unwanted cash advance checks and new card offers in your mail. You will be amazed to know that credit card information right out of your trash can also be used for fraudulent purposes.

Credit Card Companies offer absolute protection to your plastic money; however, you should also take precautions to safeguard your money and interest. To ensure that your personal information and privacy is protected, you must always use a trusted websites for online transactions.

Safeguarding your credit card is a combined effort, both by the card issuing company and you, so that utmost precautions and care while travelling with it or shopping with it. Immediately report the loss to the car to the credit card company so that they can freeze your account and no fraudulent activity takes place.

What The Protection Plan Covers

Each credit card protection plan varies from card to card, as does what, specifically, they cover. Because of this, you must take the time to really look at what is covered under the particular plan you are considering. In most cases, account protection coverage can be activated should you suffer a disability that renders you unable to work or if you outright lose your job. If you are deemed eligible for coverage, then no interest will accrue on your outstanding balances, nor will late fees be applied for a certain period of time. Additionally, you will not be required to make your minimum monthly payment. It should be noted that you will also not be able to use your credit card during this period, either.

The cost of such a plan is typically a percentage of your balance that you pay monthly. If you do not carry a balance then there is no fee.

Beware of the Eligibility Requirements

While a credit card protection plan may sound like an amazing thing to have in place should you become disabled or lose your job to ease your financial strain, the truth is that it can be rather difficult to submit a claim for coverage. If you’re unemployed when you activate the plan you are not eligible, nor will you be eligible if you quit a job or leave voluntarily. Nor are you eligible if you are self-employed. If were a full-time employee who was laid off, there may be a waiting period of 30 days or more before you can file a protection plan coverage claim, and you should be prepared to prove that you filed to receive unemployment benefits from the government.

Protection Plan Fees

The average charge for a credit card protection plan is fifty cents for every $100-worth of any outstanding balance. Some credit card companies charge even more. Therefore, the more charges you make to the account, the more expensive your coverage becomes. It is worthwhile to note that all credit card protection plan fees are added onto your credit card statement as with any other purchase and thusly are subject to interest charges.

The advice that many financial experts dispense is that you will likely benefit more from purchasing your own insurance coverage that extends to your credit card bills. Not only are the premiums generally lower but the insurance companies are often times more reputable and will help you find the best combined coverage befitting your individual situation.

Mind your belongings in stores.

When you are out shopping at the mall or elsewhere during the holidays, the frenetic pace combined with loud music and stressed-out, bustling crowds can provide a near-ideal opportunity for a thief to snatch your purse, wallet or payment card, especially if you are bogged down with bags and packages. They can also simply jot down your account number by peeking over your shoulder when you are checking out at the register. This is why you should always make certain that you keep close track of your wallet, credit and debit cards when you are out shopping and make sure you get them back after each transaction as well as cover the keypad when typing in any PIN numbers at an ATM or store to obstruct the view for prying eyes.

Be savvy about online scams.

If you dig up an offer that seems too good to be true, such as rock-bottom pricing on electronic items, put up your guard, because at the very least there may be hidden costs involved. Before going ahead and making any purchases over the internet check to see if the website address is secure, especially on the checkout page. Secure web addresses start with an https:// and additionally there might be an image of a tiny lock in the lower right hand corner of the screen. Search the site for a Better Business Bureau seal and click on it to ensure its validity. If you are unsure, phone up the BBB to enquire whether or not the company has a physical address and working telephone number. Be sure to pay for all online purchases with a credit card as opposed to a debit card, as a credit card gives you the right to dispute the charges should anything go wrong with your order.

Online classified or auction sites provide a means for tracking down hard-to find gifts or popular ones that have already sold out at the store. Exercise caution when making purchases via such sites by researching sellers to determine their reliability and never wire money as the method of payment. If possible, seek out a local seller and arrange to conduct the sale in person, as long as you arrange to meet in a public place to make the transaction.

Don’t take phishing bait.

Hackers are able to get their hands on a lot of personal information by sending out phishing emails that install a virus on your computer. Keep a wary eye out for any messages from FedEx or UPS containing links to package tracking information, as they can potentially be hacker-generated. Likewise, don’t click upon any links or open up any attachments until you are certain they are not malicious. Small errors such as typos, grammatical mistakes or email addresses that don’t correspond to the company’s name are typically red flags of a phishing email. Update all firewalls and antivirus software on your home computer regularly.

Don’ be duped into giving to fake charities.

It’s the season of giving, which means more people are inspired to donate money to charities and nonprofit agencies during this time of year. However, be aware that sometimes bogus charities are created by thieves to capitalize on the goodwill of unsuspecting consumers. Don’t give money on the spot. Instead, go home first and research the charity on the Better Business Bureau website to make sure it is legit.

Sometimes criminals aren’t the only ones we need to protect ourselves and our money from. You should also protect yourself from you. What does that mean?

First of all, don’t completely blow your budget.

Before you dash off to shop, sit down and make a list. Write down the things you intend to shop for. If you are buying gifts, list the names of the people for whom you need to purchase items. Then write down the maximum amount you plan to spend and stick to it! When at the store don’t allow yourself to go over that number even if you find a sale or other items that aren’t already on your list. Impulsive spending is a quick and easy way to go into debt. One effective method to prevent overspending is to use cash. Carry with you the exact amount you have planned on spending and when you run out you know it’s time to go home.

Take precautions with your plastic.

If you are going to hit the mall and use a credit card for purchases, bring only one card with you. Spreading your spending over several cards may make it seem like you are spending less, but you could easily overspend your budget that way. Also, having balances due on several different cards is much more difficult to keep track of, and makes it easier to miss payments.

By having only one card on you, should your purse or wallet get stolen, thieves won’t have multiple cards to play with.

However, be mindful of the charges you are piling up on that one card. This is to not only make sure that you stay well within your budget, but also to make sure that you don’t spend over 60% of your credit limit. Charging over that mark will make your credit suffer, as your available credit to debt ratio factors highly into your credit score.

Resist the temptation to take advantage of offers you’ll encounter at the register of some retailers for store credit cards. Although it may seem like you are saving money by utilizing a percentage off bonus for signing up for a store credit card, it is usually not a great move. With those cards, credit lines tend to be low and APR’s high, making them a serious threat to your financial health and ultimately your credit score.

Says Mark Ford, a consumer credit and debit card expert at PNC Bank, “Holiday shopping can be a hectic experience.” However, the loss of a debit or credit card, by accident or due to theft, is quite often preventable.

Harried consumers often simply leave their card behind at the register in their rush to run their holiday errands. Staying alert while shopping is a good start to ensuring that your credit card winds up where it should – back in your wallet.

Always Be Aware of Where Your Card Is.

Don’t give in to the temptation to save a few seconds by tossing it in the bottom of your purse after a transaction, always put your card back in its designated spot inside your wallet or billfold. Never, ever leave your purse or wallet unattended for any amount of time. A moment is all a crafty thief needs to snatch your bag and scurry away.

Keep Your Card in Your Sights

Make sure that you position yourself at the register so that you can see your card at all times during a transaction. While there are certain places that this is more difficult – when paying after a meal at a restaurant, for example – simply ask to accompany the server or cashier to the point of sale where they will be swiping your card. And be certain to always get your card back after you use it to make a purchase.

Be a Scrooge With Your Card

Don’t ever allow anyone else to take your debit or credit card and use it to make purchases, and you shouldn’t co-sign for a card that will be utilized by someone else without you being present to supervise. Likewise, you should never, ever give out your account numbers, PIN numbers or other personal information to anyone over the computer or telephone that you don’t know.

Should you discover that your card is missing and fear that it has either been lost or stolen, call your card issuer immediately to report that the card is no longer in your possession. Change all passwords and PIN numbers associated with that particular account, and consider filing a police report.

Legally, the maximum amount of fraudulent charges made to your card that you can be held responsible for is $50. The rules are a little trickier when it comes to fraudulent charges made with debit cards. The same $50 limit applies to debit cards as long as you notify your bank within two days of the card’s disappearance. Beyond two days, your liability increases to $500 and could potentially increased to unlimited if unauthorized debit card transactions are not reported to the bank within 60 days. So if your card goes missing, call your creditor right away. Some banks may also charge a small fee for replacing the card.

According to Mark Ford, PNC Bank’s consumer credit and debit card expert, “Losing a credit or debit card, whether by theft or by accident, is often a preventable problem.”

One reason for the big spike in lost and stolen cards around the holidays is pretty simple – people are just pulling out their debit or credit cards more often during that time of the year. Combine an increased frequency of use with the chaos and confusion of crowded stores, frantic shoppers and long lines and it’s no wonder that occurrences of loss and theft rise.

There are a few tricks you can employ to keep better track of your credit and debit cards. They are not only useful to know around the holidays but all year round.

• Don’t hand off you credit or debit card to anyone else for them to use, not even a family member. Likewise, it’s better not to co-sign for a card that will be used by someone else at times when you will not be present to supervise.
• Make certain that you know where you cards are at any given time. Never, ever leave your purse or wallet unattended. Not even for a second – that’s all it takes for a thief to snatch your belongings and disappear.
• Do not provide anyone else with your debit card account number, your credit card account number or any of your security passwords or PIN numbers to anyone you don’t know either over the telephone or via the computer.
• Pay attention and be mindful that you are handed back your card after you use it to make a purchases. You should do whatever it takes to make sure that you don’t lose sight of your card at any time during the transaction process. This can be awkward at times, particularly in places like restaurants or cafes. If need be, simply follow the server to the credit card terminal so that you can watch them process the transaction.

If you discover at any point that your card is missing you must immediately:

• Call the bank that issued your credit card to tell one of their service representatives that your card is lost or has been stolen. They will ask you questions regarding the last transaction you authorized and for what amount to determine if there has been any fraudulent activity since you last has possession of the card.
• If necessary, file a police report and keep a copy of it for you personal records.
• Change all PIN numbers and passwords associated with that particular account immediately. If those PIN’s and passwords match another account, change those as well.

Currently most US cards have a magnetic strip that carries credit card data and transactions with these card types do not require a pin code but instead a signature. Around the world, the American system is seen as antiquated, and issuers across the nation are looking to update their information.

MasterCard has set a goal of April 2013 to install systems for ATM operators that allow consumers to use chip and pin cards. Chip and pin cards are much more common overseas. And they provide added security because they have separate card readers that can be brought to the consumer, if they are at a restaurant for example. Because these cards are preferred overseas, it may be hard purchasing items on the go, such as gas overseas, because all their machine readers work with the chip and pin technology.

The number of US identity fraud victims rose 12 percent to 11.1 million adults last year, according to Javelin Strategy & Research, “Identity Fraud Survey Report.” It is critical that if your card goes missing you report it to your bank as soon as possible. Many card companies provide credit-monitoring services for individuals who have lost or have had their cards stolen. You can also monitor your credit through credit agencies. Even if your card has not been stolen, it is important for you to look over your monthly credit card statements and ensure that all the charges were made by you.

Credit card and debit card fraud is the number one fear of Americans in the midst of the global financial crisis that started in 2008, with the beginning of the Great Recession. Concerns about fraud supersede that of terrorism, computer and health viruses and personal safety, according to Unisys Security Index, possibly, because the threat for fraud is always lurking with the Internet.

The total annual fraud amount jumped just seven percent to $48 billion last year– despite the growing number of victims. According to Javelin Strategy & Research this is because “consumers and businesses are detecting and resolving fraud more quickly.”

This is largely due to the ability for customers to instantly check credit card balances, track your credit score and set up alerts to warn you if your card balance exceeds a set limit.

Other ways to protect yourself from credit card fraud is to sign your credit card as soon as you receive it. Also, keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place.

Most credit card issuers offer virtual credit card numbers upon request. Instead of using your actual physical credit card for online purchases, you can input a new 16-digit credit card number with security code and expiration date. It’s a credit card without the actual card. The new account information is linked to your old account, so billing will be handled in the same fashion. The money will continue to be taken out of the original account, even though you provide a different number.

Consumers can’t choose the numbers that they want for their 16-digit virtual credit card, but they can choose their expiration date. Bank of America allows the consumer to set a minimum expiration date two months from the date that they acquired the virtual credit card. Consumers can also set the maximum spending limit, as well as what website the virtual credit cards can be used on.

All that added protection at no extra cost to you. Consumers must first call up their credit card issuer to see about the application process. After approval, if a consumer wants to make a purchase all they have to do is log-on to their virtual account and create a new virtual credit card number for each time they do any online shopping.

Each credit card issuer is different, some companies allow you to reuse the same virtual card number with the same seller, but with other credit card issuers the number can only be used once. Consumers will find virtual credit cards helpful when making purchases on unsecure websites, to counteract reoccurring charges, and other security.

If a thief so happens to get their hands on your virtual credit card, they won’t be happy at all. A virtual credit card has so many loopholes and consumer specific preferences that it’s basically useless in the hands of hacker. The scammer would have to know the expiration date, the website that it can be used for and the spending limit. While virtual credit cards offer extra protection, they aren’t perfect. Some consumers have reported being able to use their virtual credit card after its expiration date or for amounts more than what the credit limit was set to.

Your credit history has no bearing as to whether or not you will be approved for a virtual credit card. But it’s important to still watch your credit card statements when using a virtual credit card. Although, it’s implausible, it’s not impossible for a thief to get their hands on your personal information and make unauthorized charges. Catch things like this early by being extra thorough when sifting through your credit card statements.

In order to protect your credit card, it’s important to know all the potential threats. Whether it be phishing or smishing, staying abreast of the biggest security threats will keep your money safe.  Right now some of the biggest security threats to your credit card are text message scams called smishing, impostor phone calls, Internet phishing schemes, and skimming devices that read and store your card information. Here are the biggest threats:

Skimming. Skimming is when a scammer gets a hold of your credit card and proceeds to record the card number as well as payment information embedded on the magnetic stripe. Skimmers use an exterior hardware to acquire the information. Skimmers usually get your personal information from faulty ATMs or restaurant employees who skim your card when you give the card up for payment. When at an ATM and you suspect it hosts a skimming device, beware because a small camera might be close as well. This small camera is usually there to record your PIN numbers. It can be hard to avoid a skimming situation, but you can protect yourself a little more by paying attention to the pictures that the banks post of their credit card slots on an ATM. If the slot looks different than the picture, then don’t take your chances, as it may be hosting a skimming device. Also, pay with cash when at bars, restaurants, or anywhere you have to part with your credit card for a period of time.

Phishing. Millions of consumers fall victim to phishing schemes every year. Phishing is the art of getting consumer passwords, usernames, credit card information, and other personal data over the Internet or any other electronic means of communication. The hacker usually pretends to be a trustworthy partner, and cons the consumer into giving over their personal information. The most common tricks use e-mail or websites that claim to be online payment systems, sweepstakes, social networking sites, and auction sites. In addition to e-mail and web presence, phishers also contact consumers by instant messaging. Large and small companies can fall victim to phising schemes, just this year, websites like Sony, Google and Netflix have been victims of phishing schemes.

Smishing. Smishing is the newest type of security threat, and if refers to hacking methods through text messaging mediums. There has been an increase in these types of crimes. The latest scandal involved fake employees sending out text messages telling consumers that their Wells Fargo account had been compromised. Consumers were then instructed to call a number, where a voicemail told them to press 1. Then a fraudulent agent came on the phone and asked for the consumers’ sensitive bank information. Banks don’t usually send out mass text messages; consumers can avoid this type of scam by always calling the number on the back of their card if there are any issues with their account.

Credit cards are at constant risk. In order to keep it secure, watch out for these basic types of security threats.

“Identity thieves don’t care if you’re a struggling student and don’t have a penny to your name,” cautions a spokesperson for the Better Business Bureau. “Sometimes all they want is to exploit your clean credit record. By establishing good habits for monitoring and detecting fraud, students can lay a path for healthy financial practices for the rest of their lives.”

There are a few things students can do to better protect themselves against those shady individuals seeking to outright steal or manipulate someone else’s identity.

• Be stingy with your Social Security number. If you are asked to provide your social security number, don’t just give it out without first asking if there is some other information that you can provide instead. The less often you give your all nine digits of you SSN, the better.
• Cut down on what you carry in your wallet. Don’t carry around unnecessary personal checks or more than one credit card at a time. Never, ever carry your Social Security Card in your wallet unless you need to bring it with you for work or school.
• Go over your statements. Sit down and look over every single bank account and credit card statement as soon as you receive them. Look for unfamiliar or suspicious activity and, should you notice anything odd, report it to your card company immediately.
• Strengthen your passwords. Change all of your passwords on a regular basis and steer clear of using birthdays, pet’s names or anything else that might be easy for someone else to guess. Use a combination of letters, numbers and symbols to make them extra strong.
• Stay secure. When filling out forms online, look at the address bar to make sure the site is secure before entering any personal or financial information. There should be both a padlock symbol and an “s” after the “http.”
• Update security programs regularly. In most cases, you can set your computer to automatically update all anti-virus and anti-malware programs at regular intervals.
• Don’t overshare. No matter what your friends are doing, think twice before posting personal information on any social networking site. Adjust the privacy settings so that you can better control who is checking out your profile.
• Stay alert at the ATM. When entering in PIN numbers, shield the keypad with your free hand. If you need to reveal personal information over the phone, be sure no one is listening nearby.
• Shred sensitive documents. Don’t just toss out papers that have your sensitive personal information printed on them, shred them first. When storing such documents, keep them in a place that can be locked. Create a computer file that is password-protected for storing sensitive digital files.