Just having received the bill for a credit card I haven’t used since receiving it several months ago, imagine my surprise to see that I had made some purchases. Now, bear in mind that this card has been in my wallet since I received it seven months ago and still has the activation sticker on it. Yet, I managed to make online purchases of a train ticket in Washington DC, sign up for a monthly MLM program and purchase another travel ticket on hotwire. The card was received seven months ago and the charges only started in November. Is there any way this could have been prevented?

Throw away card numbers - virtual card numbers - can be of some use when shopping online but I doubt they would have prevented what happened to me. In my case, the thief had somehow determined my name and correct card information. If you want to use virtual card numbers for online shopping protection that is fine, just don’t be lulled into a false sense of security. They wouldn’t have protected me since I wasn’t even using the card to make physical purchases.

This can be compared to the use of a disposable camera to prevent loss or damage to your expensive camera while you are traveling. A virtual credit card number can be used to prevent loss when making online purchases. In this case, the virtual credit card number is invalid 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and these numbers can be single use or they may be used for multiple purchases over a short time period before it is no longer valid.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.

Everyone expects their card information to be safe and secure when making a purchase online. But there is the possibility, however remote, that an employee of the online merchant would sell card information to criminals. Of course this would make them a criminal as well but some people will do anything if the price is right and there is little possibility of them being caught.

Virtual credit card numbers biggest benefit is from protecting your valuable information online. If such a number is stolen, it is or becomes worthless in a short time. If you make several purchases with your credit card per month you may see a real benefit from using virtual card numbers to assure all your transactions are secure and your information protected.

Tags: Identity Theft