How do I Prevent Online Credit Card Fraud?

If you conduct business on the Internet, you need to consider how to prevent online credit card fraud. This crime results in huge monetary losses for merchants and credit card companies every year. In addition to this, it creates problems and inconveniences for individuals. Merchants can help combat online credit card fraud by being cautious about international orders and large orders charged to personal credit cards. Individuals can fight this crime by protecting their information and limiting transactions to secure websites.

If you are a merchant, you may want to pay extra attention to international orders. There are many scams that involve using credit cards to ship items overseas, and when this happens, solving the problem is often difficult. One thing that should send up a red flag is when a credit card has a domestic billing address and the shipping address is somewhere abroad. You should also be cautious about a sudden increase in international orders to a particular country, even if the shipping addresses are different.

Furthermore, as a merchant, you should take note of particularly large orders. This is especially true when they are billed to personal credit cards. It may not be uncommon for an individual to buy several items, but if individuals appear to be making purchases by the caseloads, you may want to confirm those orders.

Individuals can also play a role in helping prevent online credit card fraud. To begin with, people should avoid asking strangers for help when making Internet transactions. Many people access the Internet using public computers at cyber cafes or libraries. If you have a problem making a purchase or paying a bill online, do not ask surrounding strangers to assist while your credit card information is visible.

Resisting the urge to impulsively act on special offers can help prevent online credit card fraud. Scammers commonly send offers in the form of spam to people’s email accounts. Excited about great deals, many people use their credit cards to take advantage of these offers without realizing they are actually giving their information to fraudsters. Many of the screens where victims are taken to process payment information look legitimate. To avoid being a victim of this trick, you should always attempt to go to the website that is extending the offer without using the links sent to you.

If you use your credit card online, make sure the websites are secure. Although this does not guarantee absolute security, it is much safer than an unsecured site. It is easy to determine which sites are secure because, generally, you will be notified by a pop up box when you move into and out of secured areas on the Internet. If you have this feature deactivated and you conduct business online, you may want to reactivate it.