On-Line Safety
Although the numbers are increasing, consumers are still not using their
credit cards on the Internet nearly as much as electronic retailers would
like. That’s why many online merchants continue to offer a toll-free
order number so that shoppers have the choice of calling their order in.
On-line shopping may be convenient—some people do all of their shopping
on-line—but credit card fraud is always a threat. Hackers have found
ways to steal credit-card numbers from Web sites.
While Internet companies have taken responsibility for security breaches
and resulting losses to credit card users, there remains the growing problem
of people who use stolen credit cards to make purchases on the Internet. And,
while unfair or fraudulent practices by credit card companies are not commonplace,
they do happen.
Fortunately, the Federal Trade Commission and the media are watching. In
1994, the FTC ordered TransUnion to stop selling “sensitive” consumer
data—data on 160 million Americans—to junk-mail producers. The
FTC charged that TransUnion violated the Fair Credit Reporting Act by selling
consumer information to target marketers who lack any of the allowable purposes
listed under the act. TransUnion denied that it had sold information that
could affect customers and appealed the FTC’s ruling. But it lost.
If the mailing list issue bothers you, pay close attention when you’re
completing any credit-card application. Most application forms provide a box
that you can check to allow or disallow the selling of your information to
mailing lists—but some remain hazy about how they will use your name
and information.
You can also protect yourself by contacting the three main U.S. credit
bureaus and instructing them to take your name off of their mailing lists.
When you write to the bureaus, include your complete name, name variations
and mailing address, Social Security number and signature—and state
clearly that you want your name removed from marketing lists.
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