The sheer number of online security breaches and sophisticated computer hackers has left many consumers weary about making online purchases. Although the only way to ensure safety from online hackers is to completely eliminate making online purchases, there are a few things you can do to greatly reduce the chances that you will become the next victim of online credit card theft:

• Ask your bank if you are able to create a “disposable” credit card number.  Consider ShopSafe, through Bank of America, for example. If you have a Bank of America Visa or MasterCard credit card, you can simply sign into your Bank of America account online and follow the ShopSafe prompts to sign up for a temporary, 16-digit credit card number, which can then be used to make an online purchase. This temporary card number, which even comes with its own expiration date and security code, is valid at only one online vendor. Therefore, you must sign up for a new card number for each online purchase. However, if you frequent a certain online vendor, you can continue to use that same temporary credit card number.
• Consider using an online payment service, like PayPal or Google Checkout. These online payment services eliminate the need to provide online vendors with credit card numbers and other personal information, and instead allow you to sign into the service and make the purchase. In addition, they also offer protection against unauthorized purchases, provided you report the fraud within 60 days.
• Consider purchasing a prepaid credit card. If you really want to avoid entering your credit card information online, you may want to purchase a prepaid credit card. To activate one of these cards, simply load it with the desired amount of money. Then, every time you make a purchase, the purchase total is deducted from your account balance, like a debit card. Be careful, however, of the fees that are often associated with prepaid credit cards, as they can come with their share of sneaky fees, such as activation fees and “load” fees.

It’s true! Studies show that up to 7 percent of all reported cases of identity theft are targeted at children. However, this statistic may be much higher, due to the fact that many families do not find out about the problem until the child becomes of age and applies for credit.

One of the biggest problems lies with social security numbers. Because a child’s social security number is dormant when they are a minor, identity thieves use them to create phony lines of credit and credit card accounts. Many times, they are able to get away with this for years.

With that said, there are a few things that you should do to help protect your child from identity and credit card theft:

• There is typically no reason to give out your child’s social security number. Question anyone (even their doctor) that wants to use their social security number as their identification number. In addition, always remember to destroy any document that contains their social security number.
• Remind your children to never give out any personal information to anyone, either on the phone or online. Identity thieves count on children giving up this information freely, so take the time to teach your child about guarding his or her personal information.
• Don’t check your child’s credit report unless you suspect foul play. This may seem counterproductive, but the fact of the matter is that checking your child’s credit report activates their credit report, which then could enable identity thieves to more easily access to their information.
• Any type of solicitation with your child’s name on it could mean trouble. If you begin receiving credit card offers or calls from collection agencies, immediately run a credit report to check for any suspicious activity.
• Immediately contact the appropriate authorities if you suspect a problem with your child’s credit. Contact the Federal Trade Commission’s identity theft prevention website at www.ftc.gov.

Unfortunately, many of us do not, which therefore leaves us quite vulnerable to a credit card thief. It is important to understand that credit card thieves are constantly finding new ways to steal other individuals’ credit card numbers and identity. Although we can’t always protect ourselves from credit card thieves 100 percent of the time, there are many things that we can do to help ourselves from becoming an easy target:

• Don’t let a clerk walk away from you when you are making a retail purchase. If your credit card is out of sight it can spell trouble in terms of credit card fraud and identity theft. If possible, request that the clerk remain at the counter with your credit card at all times.
• Never give out your credit card information over the phone unless you have initiated the phone call and you have researched the company’s credibility. Remember: a company will never, ever initiate a phone call and ask for any of your personal information, including credit card numbers.
• Never give out your personal information or credit card information through an email. And never, ever provide information of this kind if a company solicits you by email claiming to be your bank or credit card company.
• Never give out your credit card information on a website that isn’t secure, or one that you don’t fully trust. It is best to always shop with trusted retailers on the Internet and to make sure that your computer’s antivirus and firewall protection are comprehensive and up to date.
• Invest in a good shredder and take the time to shred all of your personal documents, including credit card statements and credit card offers.
• Don’t carry around a wallet full of credit cards. Instead, carry only the credit cards that you will need and keep the rest at home.
• Check your credit card statement carefully and immediately report any activity that you don’t immediately recognize. Remember: many credit card thieves will charge only small purchases so that many credit card customers won’t catch them!

What are you Waiting for?

For many of us, our demanding lives and careers simply leave us no time to remember small obligations such as ordering our credit report. However, it is the small things that can wreak havoc on our lives if we don’t take care of them.

For example, it may be inconvenient to schedule our yearly physical with our physician, but we know that it is necessary to maintain good health. Well, checking your credit report is just as important for your financial health.

What you don’t Know can Hurt you!

An error or discrepancy on your credit report can cost you much, much more than you think. Consider this: an error on your credit report can lower your credit score, which may mean that the interest rate on your next car loan is higher, which may mean that your payments are higher, which means that you are losing money!

Also, identity or credit card theft can be wreaking havoc on your credit report without you even being aware of it. Many consumers are simply shocked to discover that a thief has used their good credit to take out bogus credit cards. And they’re even more shocked when they don’t discover this until they are turned down for an important loan or credit card.

Taking Matters into your Own Hands

Ordering a copy of your credit card each year enables you to keep on top of your credit report so that you can better manage your finances and financial health.

If you find an error or discrepancy on your credit report, it is important to immediately contact the credit reporting agency on which it appears so that they can begin investigating the mistake. You may also need to contact the creditor to remedy the error, as well.

In today’s tough, economic state, excellent credit is more important than ever, so always remember to check your credit report on an annual basis (some financial experts recommend checking as often as every three to four months) so that you can stay abreast of your financial information.

It is with this in mind that we must all approach today’s technology with an educated eye. And credit cards are no exception. There are many ways in which identity thieves have fooled people into giving out their credit card numbers and other personal identification, and there are many computer-savvy thieves that have used today’s technology  to hack into consumer’s accounts.

Although there are no fool-proof methods for protecting your credit from identity thieves, there are a number of ways in which you can reduce your chance of being a thief’s next victim.

1. 1) Instead of signing the back of your credit card, write the words “See ID.” This may deter thieves from using your credit card in case of credit card theft or loss. In addition, never keep your credit or debit card’s pin number with your card, as this is essentially a free pass for a credit card thief.
2. 2) Beware of any emails claiming to be from your credit card company. Many identity thieves send out “phishing” emails that appear to be from legitimate companies. In the email, the thief may encourage to you to click on a link that brings you to a website that, although it looks similar to your credit card website, is actually a phony web site. The identity thief quickly obtains your personal information when you type in your user name, password, credit card number or social security number.

A simple way to avoid this type of identity theft is to never, ever respond to emails that appear to be from your credit card company. Most legitimate companies will never send you an email asking you to verify information.

1. 1) Do not choose an easy password that can be easily guessed by an identity thief. Identity thieves will often try obvious passwords, such as your address or your birth date, when attempting to gain access to your account, so steer clear of any commonly used numbers or phrases. Instead, opt for a password that contains both alpha and numeric characters.
2. 2) Review your credit card statement every month, without exception. Many consumers who use their credit cards frequently throughout the month never stop to review their statements – and credit card thieves are counting on it.

Take the time to carefully review all purchases made on your credit card each time your bill arrives so that you won’t fall victim to identity theft.

Bridge the Income Gap

Many small businesses use small business credit cards to bridge the gap between income and expenses. A revolving line of credit is important for many small businesses or start-up businesses, as this enables the company to continue operating the business, even when cash flow is an issue.

Search for a Low, Fixed Interest Rate

Small business cards are similar to traditional credit cards, as the credit card balances are subject to interest charges; therefore, it is extremely important for small business owners to shop around and find a small business credit card with a low, fixed interest rate.

Take Advantage of Online Tools

Small business credit cards may also prove useful to small business owners who want to track their weekly, monthly and yearly spending. Most small business credit cards offer a myriad of online tools to help small business owners track expenses. In addition, year-end account summaries are also very useful, as they enable small business owners to see the overall picture regarding their yearly expenditures.

Protect yourself Against Credit Card Theft

Like traditional credit cards, small business credit cards feature protection against fraud or credit card theft, as well. For many small business owners, the ability to check the account online is important, as they can monitor the account on a weekly – or even daily – basis to ensure that there are no unapproved charges on the card.

Include Additional, Authorized Users to the Account

Small business owners can also add certain employees to the account, thereby enabling them to purchase supplies when needed. And, because all expenses are tracked and accounted for, the small business owner does not need to worry about frivolous expenditures. For many small business owners that rely on employees to make purchases and order supplies, this account feature may prove extremely beneficial.

Keep Business and Personal Expenses Separate

For many small business owners, it may prove useful to separate business expenses from personal expenses, so it may be a good idea for small business owners to obtain a small business credit card and use it solely for business expenditures, thereby eliminating the problem of confusing bookkeeping.

Some consumers use their credit cards for their monthly purchases, as many credit cards now offer rewards and cash-back programs. Some of us have moved to debit cards as an easy way to budget ourselves. Which one is right for you?

Let’s take a look at the advantages and disadvantages of both credit cards and debit cards:

• Convenience – Both credit cards and debit cards run neck and neck regarding their overall convenience. They are easy to use, are accepted at nearly every location, and allow consumers to avoid carrying cash.
• Security – Both credit cards and debit cards are protected with security features; however, credit cards may win the security battle due, in part, to the fact that debit cards are connected to checking and savings accounts, both of which could be drained as a result of credit card theft.
• Rewards – Credit cards offer the best rewards for consumers who use them regularly. From airline and hotel points to cash back programs, credit cards have found many, resourceful ways to lure consumers into using them. Some debit cards offer reward systems, but they generally pale in comparison to many credit card reward systems.
• Online Shopping – Because of credit card theft, it is important to never shop online with debit cards. Credit cards are the clear winner when shopping online, as they are not directly linked to your personal bank accounts.
• Budgeting – Debit cards come out ahead regarding budgeting. Debit cards are ideal for the consumer that tends to overspend, as the consumer can only spend as much money as he or she has in the bank account. Credit cards, however, are often abused by consumers who view them as “free money” and overspend as a result. The bottom line: there are no surprises and large bills at the end of the month with debit cards.

What can you do to prevent yourself from becoming yet another credit card theft victim?

1. Never leave your credit cards unattended at any time. Many studies have found that the highest incidences of credit card theft occur at an individual’s place of employment. It is therefore important to not only keep your purse or wallet with you at all times (or locked up), but to also avoid placing your credit card in your desk or other area where others may see it.
2. Immediately report a lost credit card. Most of us would report our card to our credit card company if it were stolen, but not many of us would think to report a lost credit card. The time it takes to search for your misplaced credit card is all the time a credit card thief needs to obtain your credit card information.
3. Always check and double check your monthly credit card statement. Many of us who make multiple purchases on our credit cards on any given month do not take the time to study our credit card statements and the purchases that appear on them – and credit card thieves are counting on it. Did you know that many credit card thieves will make sporadic purchases in the hopes that the credit card holder will not notice the charges?  Remember that next time you receive your monthly credit card statement!
4. Never give your credit card information over the phone unless you initiate the phone call. If you receive a phone call or email from your credit card company asking to verify your personal information, do not give it out! Instead, immediately contact your credit card company to report the communication.
5. Don’t keep the pin number of your credit card in the same place as your credit card. This is simply an invitation for a credit card thief to obtain cash from your credit card!