Insurance and Credit

Hackers broke into a computer at Wyndham Hotels, in July 2008. They were able to steal tens of thousands of customers’ credit card records, card numbers, including guest names, expiration dates and highly sensitive data from the cards’ magnetic strip.

It’s a company’s worst nightmare, particularly in the face of an economic downturn, and to make matters worse, Wyndham didn’t realise the theft had occurred until September. The company remains unsure about how many individual credit card accounts were negatively affected by the Wyndham incident, however, it’s safe to say today most holiday-makers will think twice before paying for their vacation on credit!

So exactly how did such a crime occur? The fraudsters involved in this affair had clearly devised a sophisticated plan to steal the information, but the truth is, thousands of hackers steal credit card information every day, using much simpler tactics.

There are two main strategies hackers use to access credit card information: through password theft, or via a virus or Trojan horse.

Password Theft

Cracking someone’s password is the most common method that hackers use to bypass security software, and access data such as your credit card information.

A password is really just a simple string of letters, numbers and special characters – and, subsequently, there are a finite amount of combinations that can be created. A powerful computer will be able to eventually crack any password, no matter how long or complicated it is, but you can do your best to thwart their efforts.

To protect yourself as a consumer, your best bet is to create the strongest password possible. This means a unique combination of letters and numbers, special characters if you can remember them, and even a mix of lower and upper cases if possible. The stronger your password, the longer it takes for the computer to crack – and the longer it takes to crack, the greater the risk of the hacker getting caught. Easy passwords will get cracked first, so aim for complex, long and unusual combinations.

Worms, Viruses and Trojan Horses

Viruses appear in all shapes and sizes, and have many – mostly nasty – purposes. Some viruses are written to delete your files, and others are written to send out lots of spam – but the absolute worst viruses will infect your computer and collect valuable information. These are called Trojan Horses.

A Trojan Horse will typically install itself and run covertly in the background, and the user of the computer – that’s you – is none the wiser that it’s even there. It sits silently and collects data on everything you are doing, from logging into your internet banking to making online purchases, and then sends that information back to its creator.

The thing about Trojan horses is that you must open the virus for it to activate – so if you practice extreme caution when web browsing and opening emails, you should be able to avoid an infection.

For example, if you receive an email from ‘Jenny Shields’ with an attachment that says ‘Great_picture.exe’, and you don’t know anyone called Jenny Shields, then delete the email immediately. When surfing the worldwide web, should a bright and flashy pop-up demand your attention to claim a prize, don’t click on it – it’s most likely to be a scam. Practicing common sense will almost certainly help you avoid becoming a victim of fraud or infection.

You should also consider using anti-virus and anti-spyware software to help keep your identity safe. Usually, this software will search for viruses on your computer and in your inbox. It’s available for free, and the protection it offers could save you a lot of time, money and hassle in the long run.

By enforcing these simple rules into your day to day routine and using a trusted credit card can instantly lower the risk you’re at from fraudsters infiltrating your life!

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.

Just like using a disposable camera instead of your expensive camera while you are traveling to protect from loss or damage, you can use a virtual card to prevent loss when purchasing online. With a virtual credit card number, the number is discarded after one use.

As credit card fraud is so widespread we are no longer surprised by it which means the card companies are looking for some method to deal with their costs. This means they must do so without inconveniencing the ability of the consumer to make purchases online and in person while at the same time protecting vital information. Many would say that the use of virtual credit cards may well be the solution to the problem.

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.

The biggest benefit of virtual card numbers is protecting your private information online. The subsequent use of such a number results in denial of credit. If you are used to making several purchases online with your credit card per month then you may see a real benefit from the use of a virtual credit card. This will assure all your transactions are secure and your information is protected.