Despite the wealth of information that is available from consumer groups, financial institutions and online media, financial cards still face security threats ranging from identity thefts to hacked billing statements.
It is therefore unequivocal that the use of personal financial cards to carry out business transactions, finance business operations and reduce the volume of paperwork and transactional expenses is accompanied by risks.
The rise of social media has also increased security threats faced by personal transactional cards. As Javelin Research & Strategy points out, people do list their information like birthday, age, place of work etc. The problem when the personal data of entrepreneurs is available to the public is that credit card and financial fraudsters find this information useful to assume the identities and carry out their attacks.
As most of the cards are liquid in nature (after cash), they are associated with both internal and external risks. However, there are safeguards that can improve the security of financial cards and reduce chances of hacks, frauds and mistakes.
Ways to improve security of credit, debit and other cards
1. Opt for cards that have separate operational support
While any transaction card company will offer operational support, those who have a partnership with another company are likely to offer more secure prepaid cards and postpaid financial cards because the operational support is handled by a separate body. The collaborating company assumes all the fraud risk of the card holder.
This is secure in the sense that you’re going with an option that has backing of another company that stays up to date with the latest in processing and security technology. Such offers can also give you the benefit interest free deposits and cost effective entrance to the prepaid market.
2. Make your information private and secure
While there is no harm in listing company information such as the number of years you have been the CEO of the company on professional social networks like LinkedIn, it is important that you don’t list other details that include family information, your middle name, the school you went etc.
Furthermore, avoid using a public (or even an employee computer) to carry out a transaction. This is because a public PC may have a key logger software installed, which can record all the keystrokes that you make (including your card details and PIN code). Also, install antivirus software on all devices that you use to make and manage card payment balance and transactions (PC, smartphone, tablet etc.).
3. Subscribe for notifications and alerts
This is perhaps the most underutilized, yet one of the most effective methods to ensure security of credit, debit and reward cards. You can receive alerts/notifications on the go whenever a transaction takes place by utilizing the service that can also be tipped as a good business advice.
While there may be a small fee for subscribing to alerts from the company that issues the card, it is well worth the investment as you can keep a check and balance and take immediate action if any of the activity looks suspicious to you. Moreover, you can check credit card statements at the end of the months and compare them with the alerts receive to ensure that all the transactions that took place were authorized.
By taking these measures, you can significantly reduce security risks and protect your investment in a case when you’re using the payment cards to finance your business.
What measures do you take to increase credit card security? Feel free to leave comments.