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OT: Safe Credit Card shopping in the web

ktickler

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Fellow ticklers and ticklees,

I just read an article in PC World (January 2002, "Home Office: Wily Tricks to Thwart Rascally E-Thieves" by Steve Bass, page 47) about safely using your Credit Card for on-line expenses.

Even though I am an avid on-line buyer, I have always felt uneasy about leaving my credit card information all over the place. I always try to be secure and keep my information private and in one location and to not save any profile in any web site. However, this is tiresome and makes me very paranoid.

One of the things the article talks about it to generate a temporary credit card number that you can use safely in the web. The site the author recommends is http://www.mbnashopsafe.com. He says there are other credit card companies offering the service, but that's the one he uses.

You register the real credit card(s) you want in the system. Then you can select which one to use to charge to. Finally, using some Flash-based software, you can generate a fully valid credit card number with the expiration of your choice (1 month minimum) and with the amount of your choice ($1 minimum). You can use this number (and the three-digit CVV2 or CVC2 number, if the merchant asks you for it), to make any purchase anywhere.

The account number will be accepted anywhere your credit card would be accepted. The online merchant does not need any special software or applications to process your account number.

To provide additional security at each merchant site, a new account number needs to be generated for each online merchant site. However, you may reuse the same account number at the same merchant site if the Valid Thru date has not expired and the balance remaining covers the amount of your purchase.

I just bring this up because a lot of us subscribe to sites, buy videos or clips, and do several purchases on-line. This is a good way to prevent your information to be stolen and to prevent to be over charged. One good example is to make sure memberships do not "automatically" renew even if you only wanted a short-time membership.

Well, I hope you find this information useful.

Bye,

Knight Tickler

P.S.: For those hackers in the house... How is this technology different from the one used by early time hackers to do on-line purchases with valid "looking" numbers that did not point to any valid account? This was possible before on-line merchants started doing their account checks. However, how can they now verify that this is a valid account even though it was randomly generated?
 
Thanks for sharing this information ktickler!
 
My pleasure... I just wish more people would comment about it. Especially my final questions. 🙂

Bye,

Knight Tickler
 
My opinion

It sounds good, but there isn't enough technical info on the site to determine how secure it is. My first impression leaves me feeling that it isn't any more secure than what is available already. I am by no means the most qualified person to answer this question, but I have a few concerns:

The encryption scheme used to generate the "fake" card number in a Flash based program will be broken in about 5 minutes. This number is generated using Flash, which is open source. If hackers can see the code, they can decrypt it. You can download an .swf format decompiler for free on the net. What's so secure about that?

This is just another step for a hacker. It seems like the easiest step to get past too. The harder part is the SSL. Any hackers worth their salt wouldn't bother with cracking one person's credit card #. They'd hack into the server that stores all of the credit card numbers and steal the whole list, threaten to pass them out to the world, and wait for the company to give them a large chunk of cash in exchange for saving the company from a huge PR mess.

This sounds like a marketing scare tactic to draw in more transaction processing $$$ for MBNA to me. 90% of all online fraud complaints come from auctions like ebay when the goods purchased were not as advertised, were deceptively described, or were never delivered at all. Credit card fraud caused by someone stealing your number is relatively low, and happens less online than it does in the "real world."

Steve
 
Steve,

You make good points.

The technology to create "fake" credit card numbers is not new. I am not worried that someone is going to find out how to generate numbers (you can find such software easily in the Web). What I am not clear about is how they make sure that the number is recognized as a valid credit card number when the merchant checks for it.

Having our credit card information on-line is dangerous whether you do it for this or just to pay your bills on-line. The poitn is that if you ever want to do it, do you want to keep all your info in one place or do you want several people to have it?

Anyway, I am still trying to figure out an answer to my question. How do you verify people's credit card numbers for on-line purchases? Who offers such service?

Bye,

Knight Tickler
 
Anyway, I am still trying to figure out an answer to my question. How do you verify people's credit card numbers for on-line purchases? Who offers such service?

ktickler, you and I agree, and share the same question. From what I understand, most online transaction go through "authorize" which validates numbers based on the number compared to the address of the cardholder. With random numbers generated through a third party, I see a "lag" in the ability to process real-time transactions.

Assuming this model works as I understand it, that would make fraud higher, but instead of the individual paying the price for it, it would be the webmaster (chargebacks). This would cause the prices for services sold online to skyrocket, thus making the consumer absorb the cost of the additionl fraudulent transactions. Again, it seems like a great scare tactic to draw in more transaction business, but a poor way to prevent online fraud (which is their whole claim of purpose).


---- begining of drunken rant (7 long islands.. who knows.. i didn't drive)---

If this were the case, I can't to see what CCBill, and IBill (or whatever they are called now) would be charging in the future... 20%? 25%? 35%? Who cares? As long as MBNA has everyone scared enough to process through them so they get their 3% of the transactions of the adult internet business that accounts for 90%, yes 90% of ALL online transactions. Prety good idea. Then when all the conservative folks (myself included) who own a "good bank" stock love their return, they will still be clueless as to WHY their stock is so valuable. It's very vogue to say that your "internet" stock is doing well, but not that your PORNO credit card transaction processor is doing well.

Anyone who doubts this craziness should see the CCBill web admin area (for the largest internet transaction processor) which ONLY gives options of categories of site descriptions such as "anal, titts, blow jobs etc." NOT ,"baskets, cd's, furniture." Not to mention that every week I personally get ads from them advertising "the best money making opportunities on the web" which ALWAYS includes ADULT material ONLY.

They're trying to grab a bit of business, and who can blame them? Just look deeper, and see what's going on. Ask the, "Largest processor of online transactions" where 90% of their revenue comes from and hear the silence. It's no wonder MBNA would try and get a 3% piece of the action.

---- end of drunken rant (wondering why i got all over the adult web stuff) ---

My 2 pennies,
Steve 🙂
 
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