Online Security Measures
Online shopping and internet banking are very useful and convenient methods of obtaining goods and services, and of managing your credit card account. However, there are basic security issues to keep in mind: remember to keep any personal or security details secret at all times. If someone has access to your account details or to any of your financial information, they may be able to authorise fraudulent payments from your account. Should you suspect that someone else has access to your details, contact your card provider to prevent potential fraud: they will be able to assist you in securing your details or temporarily freeze your account.
Phishing Scams
Phishing scams are internet fraud schemes which aim to acquire internet banking customers' login information. If you manage your credit card account online, you must be vigilant to avoid phishing scams, via which you could lose money from unauthorised withdrawals and payments. Phishing is initiated through unsolicited email that requests account holders' security information under the pretence that it is a genuine email from their bank or building society. Never give out any personal or security details in response to an email: your card provider would never ask you to provide your information in this way. Although banks and building societies secure funds as far as possible, they can only ensure safety when customers have exercised due care. Basic security measures should be employed when using internet banking to protect your account from fraudulent misuse.
Good practice guidelines advise you to: check the credibility of an unsolicited email supposedly from the bank or building society; never enter a full password or your PIN details (internet banking systems ask for random characters in order to login); remember, rather than note down your security details; choose secure passwords; install and regularly update anti-virus, firewall, anti-spam and anti-spyware software; check that a secure connection is established via a https:// website and verify there is a security certificate for the web browser. Using a secure computer to access online services is paramount to protecting your financial safety.
Consumer Credit Protection
One of the best ways to shop online is to use your credit card, because you are protected under Section 75 of the Consumer Credit Act. If there is a problem with your online purchase, you may be entitled to a refund of your payment. If you have a claim against the online retailer and they are uncooperative, you may also be able to claim against your credit card provider. There are certain conditions that must be fulfilled before your claim is successful, but in many cases you are protected against the dangers of online shopping. For more details about the protection provided see Consumer Credit Act.
Distance Selling Protection
When you buy goods and services online, you are protected by the UK's Distance Selling Regulations. These regulations attempt to protect you, the consumer, from poor or fraudulent service while shopping online. In summary, you are entitled to: a seven working day cool-off period within which you may cancel your order; clear information about the goods or services before you submit your order; confirmation of your order and your order information in writing; and protection from credit card fraud. For example, if a retailer has fraudulently taken payment on your credit card, you would be entitled to cancel this payment or have it refunded.
New Security Initiatives
Both MasterCard and VISA payment systems have begun to combat online fraud with a new level of verification. These security initiatives require you enter your PIN or an additional password online, to verify your presence. If the PIN or password is not correct then the transaction will not be authorised. To provide peace of mind that your PIN and password are secure, MasterCard or VISA will verify the site as genuine by displaying a predetermined secret phrase. This will confirm that the website is part of the MasterCard or VISA payment system. If the secret phrase does not appear, you can be confident that the website is not genuinely MasterCard or VISA and may be phishing for PIN and card details.
