Be wary while sharing your credit card's security code

The credit card security codes offer a false sense of security.The actual security lies with you.It is natural to feel a bit awkward when some strange voice over the phone asks for your security code.These security codes are a set of 3 to 4 digits that are found on the card and are required to complete a transaction online or over the phone.While we are all very guarded with respect to our phone numbers or the social security numbers, we don`t seem to bother too much about these credit card security codes.Firstly, one must find solace in the fact that consumer laws offer protection by limiting the liability in case of fraud, to $50.If the incident is reported without delay then you owe nothing.There could be a problem for someone who is not in the habit of checking their statements and monitoring them regularly.

These security codes of three or four digits (CVV2, CVC2, CID, and CID2) are basically used to identify the card information while the card is not present.These are basically an additional layer to protect the card from online fraud.

Even in instances where there is a risk of someone using the security code as well as the card number, they can`t get too far as they would require the card, physically to complete a transaction.However, online transactions are slightly different.Here fraudsters will have a range of retailers they could choose from.Here they can easily shop online if they have the card number and the security code.In order to protect oneself from online fraud one must be wary of whom to trust.While using the card details one must be absolutely sure of the credentials of the company or organization before authorizing them to use the card data.

It is better to use a credit card instead of a debit card if one is unsure of the credentials of the person who will handle the card.Then, in case there is some fraud it would be easier to dispute it if the credit card is used instead of the debit card.It is the card holder who would be better at making a distinction of what is safe and what is not.For, just by protecting the security code there is no guarantee that we would not fall victims to online fraud.Watch out for fraudulent charges and bring it to the lender`s notice immediately.

Bryant Park

Bryant Park is a financial consultant for one of the companies listed on Wall Street. He writes on a variety of topics ranging from credit cards to different loans that can be availed by consumers. He holds a bachelor degree in Financial Services from Dartmouth College.