Are Virtual Credit Card Numbers Safe Today?
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by: KermilJ.Fogarth
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Word Count: 574
I just received my the credit card bill for a credit card I haven't even activated since receiving it several months ago. It appears I have signed up for some monthly MLM deal as well as purchasing a train ticket in Washington DC. Oh, and I also bought something from hotwire.com. Now, as I say, the card has been in my wallet since I received it seven months ago and still has the little sticker on it telling me to call and activate it from my home phone. The charges only started in November. Could this have been prevented?
The latest trend is toward disposable credit card numbers but that probably couldn't have prevented those bogus charges on my card as the thief was using my name and the true credit card number. For online shopping protection the use of virtual card numbers may be helpful. Hopefully they won't lead to a false sense of security fostered by one-time use of a virtual number. Use of a virtual number wouldn't have prevented the thief from getting the real information as happened to me.
Similar to using a disposable camera while traveling to protect your expensive one from loss or damage, a virtual card can prevent loss when used for online purchases. In this case, it is the number that can be used once and then discarded.
Since credit card fraud is so widespread we aren't surprised when it happens and the card companies are looking for ways to cut their losses. This must be done without inconveniencing the ability of their customers t make purchases either in person or online while protecting vital information. They are hoping that virtual card numbers will be the solution.
The use of virtual card numbers for online purchases work the same way as a normal card number except they are only valid for a short time period. These numbers are issued as a short term replacement of the actual card number and are only valid for a short period of time. True card information is not sent to the vendor and these numbers can be single use or they may be used for multiple purchases over a short time period before it is no longer valid.
Virtual card numbers are intended to hide the real number from those who wish to use your information for their purposes and possibly damaging your credit. Should a secure processing center be hacked by someone wanting credit card information, your use of a virtual number would render your account safe. If they used your virtual number the result would be a denial of credit.
You expect that your card information is safe and secure at secure sites during your purchase. There is however the possibility that an employee of an online merchant could sell credit card information to criminals. While this in itself is a criminal act some people are willing to do anything if the payoff is high enough and there is little chance of them being caught.
Virtual credit card numbers biggest benefit is from protecting your valuable information online. If such a number is stolen, it is or becomes worthless in a short time. If you make several purchases with your credit card per month you may see a real benefit from using virtual card numbers to assure all your transactions are secure and your information protected.
About the Author
Author: Kermil J. Fogarth has extensive finance information available at his website. For more credit protection tips.
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