Internet Marketing for Wealth Creation

Lesson 4: Understanding Legal Aspects and Scam

(a) Usage of Credit Cards, Passwords and Misuse

Most people are afraid of money transactions over the internet, especially concerned about using credit card. Indeed many people lost huge amount of money while transacting online.

Is it Safe Using Credit Cards Online? Is it safe making financial transactions through computers?
I would confidently say it is!

It is safe - if you understand online scam and if you are cautious while typing in sensitive data (like credit card number and passwords). Let us try to understand credit card transactions:

What happens when you are buying online?

• You will be entering your credit card information on your computer
• The information is transmitted through telephone line to the credit card payment gateway server
• The gateway server verifies and approves your credit card and withdraws money from your account and credits to the seller
• On successful payment, the gateway server directs you (the browser) to the product download page or order acceptance page

Here you can see, when you enter the credit card information, it goes directly to your credit card server and not the merchant.

The security issue here is; a hacker can hijack the data entered on your computer. But since the data is encrypted using 128 bit SSL code before it is transmitted, the hacker cannot get your credit card details.

If you can't understand what a "128 bits encryption" is, please read the first article listed below. It has been clearly explained in the laymen's language.

Believe me. Using Credit Card on the internet is safer than using it offline!

Now let us compare the above online transaction with a credit card transaction in the real life (at a hotel).

What happens when you are paying offline (at a hotel)?

• You give your credit card to the bearer/waiter
• The bearer/waiter takes it to the person at cash counter
• The cashier swipes your card on the swiping machine
• The swiping machine transmits the data through telephone line to the credit card server
• The server verifies and approves your credit card and withdraws money from your account and prints the receipt
• The cashier hands over your credit card along with receipt to the waiter
• The waiter brings it back to you and you acknowledge the receipt

Now, let me ask you one simple question: What if the waiter or the cashier writes down your name, credit card number, date of expiry and the 3 digit security code (behind the card) and misuses for his/her own benefit or pleasure? He/she could even use it on the internet, can you control that?

Of course, you might argue that the credit card can be blocked as soon as you come to know about a misuse. The same thing can be done in case of misuse on the internet transaction also.

The possibilities of losing your sensitive information:

1) Phishing

You know that you can rely on a banker's website like www.icicibank.com and is safe to enter your personal data. Obviously intelligent crooks know that too. A person with the intention to snatch your sensitive data would create a website like www.icicibanking.com or www.icicibank.org to imitate the bankers' original website. Usually such minute variations go unnoticed.

Then such people pose as if they are the bankers (or Credit Card Company) and email you asking your sensitive data like login password or credit card details - with a link to reach their website in the email message.

If you receive an email stating that 'security of your data at the bank's website is being compromised' and that 'you must click here to login and change your password immediately', you would click on the link almost instantly. Any unsuspecting loyal customers of the bank would do the same and enter the username and password (or any data requested through email). When you enter such information, the database of the robber is updated with your data.

And the crook walks away with your data to encash your hard-earned money. Usually such theft occurs as soon as you enter the data, before you realize that you reached wrong website.

You should be aware of the following:

• No banker/company will ask for sensitive details through email or phone.
• Avoid clicking on a link to reach important websites. Prefer to enter the domain name manually or use bookmarks (mark important websites when you reach there for the first time).
• Ensure that you reached the right website. For example "http://www.icicibank.com" and "http://www.icicibank.com.icicisite.us" are not the same. The earlier one has extention .us and the latter one has extension .com
• When you reach a website to enter sensitive data, ensure that it is 'secured' website. Such websites start with "https://" and your internet browser (like internet explorer) displays a golden lock at the bottom right corner.
• Never use a public computer (like cyber cafe) to enter any sensitive data. Preferably, dedicate a computer purely for business transactions.

2) By reaching a wrong website and entering your credit card details

It is dangerous to use your credit card at the websites where you can get pirated software, gaming sites, porn sites and gambling sites. If you are serious about business (or education), never ever visit such sites. Usually these are the sites where viruses and spyware software originate from (though there are few legal sites available, we cannot differentiate them).

If you enter your credit card details at such websites, there is no guarantee that it will not be misused. Never misuse the internet.

3) Through a spyware (virus) on your computer

There are many viruses that register your keyboard strokes (whatever you type) and keep sending the details to the hackers (i.e. the creators of such viruses / spyware programs).

To prevent such spyware, there are lots of utilities available today free-of-cost. You can try installing Yahoo tool bar or Google tool bar that includes anti-spyware. I believe Microsoft also offers some free anti-spyware software.

In addition to freeware, it is recommended to have a reliable anti-virus package loaded on your computer.

Conclusion

If you are alert and have taken safety measures to protect your computer from spyware, you need not worry about money transaction on the internet.

I suggest, you must read the following articles:
(The pages were available at the time of writing this. Hope it is available when you read this!)

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Previous Chapters

Lesson 1: Introduction to Internet Marketing

Lesson 2: Online Business v/s Conventional Business

Lesson 3: Major ways of Earning Money On-line

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