How to ensure your credit card is secure in cyberspace

Commonsense goes a long way

Marc Holt

When e-commerce started on the Internet a few years ago a lot of people were concerned about security. There were horror stories of people giving out their credit card number on web sites and losing thousands of dollars in unauthorised purchases. But in most cases the people who suffered did so through their own fault.

They just didn't take enough care to protect themselves from the unscrupulous. In truth, it is safer to use your credit card on the Internet than it is to hand it to a waiter in a restaurant, as long as you take a few simple precautions.

Like any purchase you make with a credit card, the weak link in the chain is when you actually hand over your credit card. Or on the web, when you give out your credit card number. You need to be sure that the person handling this very confidential information is reliable and not likely to steal using your card.

TIPS

Here are a few tips that will save you a lot of grief and help you make informed and safe purchases:

1. Only deal with web sites you know are reputable. You can do this even if you have never done business with them before by checking their credentials. If you know any of their customers, ask them. Are they well known on the web for reliable, honest dealing? Have you read about them in newsletters, online discussion groups, chat rooms, etc?
Find out as much about the company as you can before you start doing business with them.

2. Read their privacy statement. Any reputable web site offering products or services for sale will have a privacy statement that defines exactly how they protect your privacy and security during purchases. The statement should tell you what they do with any private information you send them. For example, once an order has been processed the company should delete any reference to your credit card on documents stored in their files-electronic or paper.

They should not give out your email address to mailing lists or other people. Read the privacy statement at http://thailandexportguide.com/privacy.html for an example. If a web site doesn't have a privacy statement, go shopping somewhere else that does.

3. Make sure the company has a refund policy and that it states clearly the terms and conditions under which a refund will be made.

4. Make sure the web site offers an SSL (Secure Socket Layer) order form.

This is a form you can fill in online that is stored on a secure server. Only the merchant has access to an SSL secure server using a user name and password. You can tell if the order form is on an SSL secure server because your browser will show a highlighted lock somewhere on the screen.

As you enter the form, your browser should also pop up a dialog box telling you that you are entering a secure data entry area. If you don't see these don't go any further. Find another site that offers secure ordering. 5. Be very careful about giving your credit card number to pay-for-sex web sites.

SSL TECHNOLOGY

So, what is SSL technology and how does it protect you? When you send an order using an SSL secure form, your web browser encrypts the data you enter on your screen. When you press the Send button, your order is sent to and stored on the SSL server. No one can read it while it is being sent, and no one except the authorised client can get at the information on the SSL server. Once there, it can be processed in two ways:

1. If the web site has special software installed to do real time credit card processing it will send your card number, name and expiry date to the merchant's bank. If the bank approves the purchase, it sends a message back to the software, which then gives you access to a special directory where you can download the product.

2. If the merchant processes orders manually, it will log into the SSL secure server using a private user name and password. It will download your order to its computer. Then it will send your credit card details to its bank for processing. If the bank approves the purchase, the merchant will get in touch with you by email with instructions on how to download your purchase. Or if it is selling a service, it will start providing that service.

SECURITY LEVELS

There are different levels of security available on the web, depending where you are physically located in the world, and which browser you use. Most browsers outside the USA use 64-bit encryption technology. This means they encrypt your data using a 64-bit encryption key.

Although data encrypted using this key may be broken, it would take many weeks or even months using a supercomputer. The National Security Agency (NSA), the agency tasked with protecting communications in the USA, has decreed that the much more secure technology using 256-bit encryption cannot be exported.

They feel that if governments outside the US get hold of this technology it may compromise US security. However, an Australian company recently released a 256-bit encryption system that you can add to your Netscape browser that works just like the US version. Despite this, the NSA still insists on protecting the technology.

Netscape tells you what level security you have installed. To find out, click Help on the menu bar and then click on About Communicator.

Then scroll down until you see this text: Contains encryption software from RSA, Data Security, Inc Copyright 1994 RSA Data Security, Inc All Rights Reserved. Underneath that you will see information on the type of technology used. For most of us it is completely meaningless. As long as it is there, you can feel safe that your browser is protected by SSL security for online transactions.

WHAT IT ALL MEANS

The technology for processing online credit card transactions is as safe as it can possibly be. But what do you do if something goes wrong and you find someone using your credit card without your authority?

You do exactly what you would do if you had lost your card. Report it to your credit card company immediately and have the card canceled. Then get a new one issued and learn from your mistake. As long as you take reasonable precautions when using your credit card online you should have no problems.

A little common sense in cyber space goes a long way, just as it does in the real world.

Marc Holt is managing director of Holt WorldWide
http://www.holtww.com/
a web site design and promotion company.

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