Keeping Your Identity Secure (#3)

Taking Steps with Purchases – On and Off the Internet:

Identity theft is not limited to internet users. Stopping all internet purchases does not eliminate your risk. In fact, the only reason it reduces your risk, is because you are not using the credit card in the first place. So what can be done?

Here are some tips to protect yourself and still get your quilting fix:

Use only one card for purchases on and off the internet - If you only have one card in use and YOU keep it at a low limit, you will be able to pay it off each month, easily see fraudulent charges, and keep your risk down.

Keep a record of all charges to your card - This is an easy task to do with an inexpensive pocket notebook. You could even make a pocket to keep the credit card in the front of the notebook to make it an easy carry all.

Pay by check or cash – If that is not possible, think about purchasing a “debit card” or gift card from your favorite retailer or credit card company. Here at Grace Full Creations, you can purchase a gift certificate for yourself that acts like a debit card. The amount reduces as you use it. You do not have to use it all at once. The transaction can be done via the phone or internet. Then instead of posting your credit card as payment each time, you can post the code for your personal debit gift certificate. If desired, we can also call you when your balance gets low.

Many of the credit card companies are also providing “gift cards”. Some have initial fees, but the $3 it will cost, might save you thousands. Plus, it can be used as a budget device so that you only spend what you have budgeted into it. In today’s economy, budgeting can be the difference of enjoying life as you like it and not having enough at the end of the month.

You can also open another checking account that has a debit/credit card attached to it. Transfer only enough funds to cover your charges. This will limit your risk and still allow you to be able to have the convenience of a credit card.

Know who you are paying. Within the survey I asked which payment method was “perceived” as the most secure? Here are the results:

1. Credit Cards processed ON-line …..51%
2. Pay Pay®, a 3rd party processor ….. 46%
3. Money Orders …..35 %
4. Credit Cards processed OFF-line …..11%
5. Credit Cards processed via PHONE/FAX …..11%
6. Check or e-check, direct from your checking account …..9 %
7. GoogleCheckout®, a 3rd party processor …..<1%

Let’s remember these results are the consumer’s perceptions. They do not accurately test which method is the safest. Let’s examine each one and how information is transferred and stored.

Credit Cards Processed ON-Line, Third party processors – Basically, this group processes your personal information the same general way. You type the information in and when you click submit, the transaction is automatically processed. Depending on the selections that you, the consumer, has chosen, your information might be stored in their database. The security of the transaction and the storage will vary depending on the security systems that the processor has in place. Their advertising and marketing will affect your perception of their security. They could possibly all have the same security measures, but be viewed differently. You, the consumer, will have to evaluate the risk based on referrals, the processor’s security policies and other information they provide.

Money Orders or Checks - For the consumer, these methods are fairly secure. For the Merchant, not so much. We have to fully trust who we are selling to. To protect themselves, merchants will choose to accept these payments, but not send the goods until they clear. Checks and Money orders are easily counterfeited and extremely difficult to collect on if something goes wrong. The greatest risk to the consumer is theft through the mail or the merchant not delivery the items.

Credit cards processed OFF-line or information provided through phone or fax – In the case of off-line processing, the consumer provides the information which is then transferred to the merchant to process in the same manner a merchant might in a storefront. The securest merchants will have an encryption method to store the information until it is downloaded for processing. Then the best option is to have the information deleted to limit risk. With the exception of the storage, providing the information via the phone/fax or internet, the security then relies on the merchant. Just like handing the card over the counter, you must know who you are dealing with. Know how they store, process, and then store again the orders and your personal information. Who has access to it? Just like if you processed your orders through one of the large companies, do multiple people have access to your card information? Is it stored as hard copies or via computer? Is there password, firewalls, and other security devices protecting those computers?

There is no true answer as to which method listed above is the most secure. But do your research and you will feel safer with your transactions. And you will know who you are dealing with.

When you place an order over the internet you will want to be sure of one thing above all else – the transaction is secure.  So how can you tell?

Oh, they have a cute little logo saying “I am Secure” – ANNNNN – wrong answer! Anyone can steal a logo from any one else. Plus these people are creative. They probably can design one. The only way you can see if the particular site or page is secure is the presence of an “s”.

For example, when you enter into my site my web address reads http://www.GFCquilting.com. When you enter into any of my secure pages where sensitive data exists, the address changes to https://www.GFCquilting.com. This little “s” means that the owner of the site is who they say they are and that the transmitted information is encrypted.

Sites do not have every page secure. Why? Because it is overkill. You only need the pages that have your personal information secure, such as registration/login, profile editing, the shopping cart, and the checkout process. This is why you get an annoying message that you are going from a secure page to an unsecured page after you view your cart. When was the last time a hacker wanted to see that you are looking at Buggy Garden fabric rather than Civil War?

You can also check the security certificate by clicking on that cute little “I’m secure” logo. It should match the company you are dealing with.

When purchasing at a local store, make sure that there are no extra copies of your card number and expiration floating around. In the good old days before scanning devices came into play, these transaction sheets were how retailers got their money. Extra copies can mean, extra purchases you were not expecting. If a retailer wants to make another copy of your card either through a printed swipe or a scanning device, question them on the reason. Do not have them throw the carbons or extra sheets away. You take them and shred them. If they ask to re-scan your card, make a note in your notebook, just incase extra charges show up.