As your financial transactions
online grow, so does your vulnerability to online credit card fraud. Each time
you use your card for an online transaction such as shopping and paying for
utilities, your card information can be captured by a cybercriminal in a
variety of ways. Card information theft happens when the ecommerce site has
been hacked and cybercriminals have stolen the credentials of its customers, or
when a browser hijacker is employed to lead customers to a phishing site that
is a replica of the real site. Theft of credit card information also happens
when your computer has been hacked and a keylogger has been installed to
monitor your keystrokes.
Stealing your credit card
information is the first stage of credit card fraud. Once it is accomplished
and for as long as you are unaware that your card has been compromised, a
cybercriminal can use it for online purchases. Small amounts of online
purchases can be made to avoid detection and enable the fraudster to use your
card for some time. If you rarely check your credit card statement and do not
keep track of your online transactions, you will be paying for the purchases of
a fraudster for some time.
Virtual credit cards can be an option against credit card fraud when you find it tedious to keep track of your online purchases. You have to apply for it and it is given as an extension of
your principal credit card. It works like a token that has temporary validity
and a credit limit that you can set through an arrangement with the card
issuer. Virtual cards carry a different number and do not bear the information
of your principal card. Fraudsters regard these cards as of no real value for
credit card fraud because of its temporary nature and low credit value, and
furthermore, it does not give access to the credit information on the principal
credit card.
Virtual credit cards are convenient
for day-to-day online purchases and takes out fear of credit card fraud. It has
an adjustable credit line that allows you to set the credit value according to
your regular online transactions. When it is compromised, the fraudster can
only benefit from the remaining amount of credit. Furthermore, you are not
inconvenienced with the need to have your principal credit card blocked and
replaced.
There are some disadvantages though
to the use of virtual credit cards. Since it carries a different number has no
reference information to link it with the principal card, you cannot use it in
situations where your account information has to be verified to conclude a
transaction. Examples of online transaction to avoid using virtual cards are
reservations for hotel accommodation and arranging rentals with a car agency.
You will be required to present the credit card in which the payment was done
to claim your booking, which makes account verification a nuisance. Thus, you
must be aware of this restriction when you use a virtual card to avoid becoming
a victim of credit card fraud.
Keeping your credit card information safe is essential when you shop and
transact business online. Though it is not a perfect solution to all online
transactions, virtual cards provide the advantage of adding a layer of
protection against credit card fraud.
