Credit Card Debts: Causes and Prevention

Since the credit card business is getting more and more competitive, the rules and policies to apply a credit card is easier compare to olden days. Therefore, credit card debts happened.

Causes:

1. Expenses more than income: If people spend more than their income, definitely they are in debt. For instance, recently the petrol price is hiking up, if people continue spending like before with their same salary, obviously they will be forced to step into a deep credit card debts' hole.

2. Poor money management: Credit card provides us future money to purchase what we want easily, but without good budget, people tend to buy recklessly and forget about the accumulated bill plus interest at the end of the month.

3. Using credit card as cash: Yes, it's convenient to use credit card to purchase anything anywhere. That is why people tend to use credit card instead of cash, thus increasing the debts in daily basis.

Prevention:

1. Use cash instead of credit card: If we purchase with cash, the feeling of the tangible cash is running low in our wallet or bank account will lead us to the feeling of how little money we own. So, it might help the credit card user to control their expenses.

2. Create a budget: Individuals must create their own budget in spending. Necessity comes first followed by other items. That is how we reduce debt and save money.

3. Education: Educate youngsters on how to manage their pocket money during their school times without over-spends is a way to prevent them to fall into credit card debts problems.

4. Cut up your cards so that you are not tempted to use them. Save only one card for emergency purposes.

Review on Internet Security: More than 1 million computer viruses in circulation now (April 11,2008)

Recently, there were more than 1 million malware including computer viruses, worms and Trojans circulating in the internet from the Symantec bi-annual Internet Security Threat Report. These might be resulted from a huge numbers of new malicious codes being created by the cyber crime groups.

One of the reasons is criminals increasingly using Trojans as their main tool to gain access to other computer and use that route to download and install a variety of other malicious programs. Besides, some malicious installations happen when websites are visited or programs, such as online games are started up. There is also a growth in professional digital criminal underground, these experts are expected to be paid to steal information and aiming for new victims.

Besides, most of the malicious codes are targeted on Microsoft Window's based PC. These malware will utilize popular communication tools to spread worms by sending through email and instant messages, Trojan horses dropped from websites and virus-infected files downloaded from p2p connections. Malware will also seek for vulnerable systems, making their entry quiet and easy. In fact, there are 90% of people using Microsoft Window's platform, so it is very risky if we let our Window's systems vulnerable to attack without any proper safeguards.

Please refer to the source of the issue here. <click here>

How Safe Is Your Data?

Generally, there are three situations that expose us to the risk of data loss or data stolen:

1. Malicious attack from internet
Nontechnical attack is when perpetrator uses deception or persuasion to trick users into revealing their personal information or conducting actions that compromise the security of their network. Technical attack is conducted using software and systems knowledge or expertise, such as spyware, malware, viruses, worms, and Trojan horse.

2. Stolen hardware

Data stored on laptops, external hard disks, CDs, and other portable storage devices are loss and exposed to potential abuse when the hardware are stolen.

3. Faulty hardware
Without proper backup systems, any data stored in the computer will be loss permanently if the hard disk becomes faulty and unrecoverable.

Now, let’s have a quick view of a few cases where the users’ data were stolen.

· April 2007, University of California, San Francisco (due to hacker)
The University’s server which contained confidential information such as names, social security numbers and bank account details of 46,000 students, faculty and staff was hacked into.
· April 2007, Georgia (due to stolen hardware)
A company lost a CD consisting 2.9 million Georgia residents’ names, social security numbers, addresses and members identification for recipients of Medicaid and other medical programme which belonged to Georgia Department of Community Health.
· 2006, Own experiences (due to key logger)
My brother’s MSN and his online games’ accounts were hacked. This unknown person was using his MSN chat room, messing around with his games’ characters and spamming mails using his hotmail account.

For more cases, visit:
- http://ecommerze.blogspot.com/2007/05/identity-theft-cases-on-stolen-laptops.html
- http://blogcritics.org/archives/2006/12/11/193220.php
- http://www.bio-itworld.com/BioIT_Content.aspx?id=74012

In conclusion, as an internet user, we must be very careful in handling our data. Hence, proper anti-virus, anti-spyware and strong firewall programs are necessary. Frequent data backup and data encryption are also very important.

For more prevention methods, visit:
- http://ezinearticles.com/?10-Simple-Tips-to-Prevent-Data-Loss&id=385794
- http://wordprocessing.about.com/od/troubleshooting/a/dataloss.htm

Safeguard of personal and financial data

We can protect our personal and financial document against potential fraud by eliminate our own paper trail. A shredder can work for a few sheets paper at a time. We can also contact a commercial shredder to do it if we have a large quantity of sheets. Likewise, we can also review the monthly statements which can alert us to possible fraudulent charges. We may also find legitimate charges for services which are redundant or unnecessary. We must always guard our social security number by make sure that anyone asking for our social security number is really needs it and do not print the social security number on checks or high visible places.
Besides that, we should choose the PIN number wisely. A combination of uppercase and lowercase letters and numbers will be more secure. While using the Internet, we must be cautious from become a victim of a phishing scam. So we should verify any request for personal information before you give out any sensitive data. Anti-virus software, firewall and anti-spyware software must be installed in our computer and always keep them up to date. These can protect us against viruses and Trojan horses that may steal or modify the data on your own computer.

Phishing

Phishing is a scam in which the attacker sends an email purporting to be from a valid financial or E-Commerce provider. The email often uses fear tactics in an effort to trap the victim into visiting a fraudulent website. The particular website looks like the valid E-Commerce or banking site. The victim is instructed to login to their account and enter sensitive financial information such as usernames, passwords, account IDs, ATM PINs or credit card details. Subsequently, this information will be sent to the attacker who then uses it to engage in credit card and bank fraud.

However, it is easy to prevent a phishing scam. For example, do not open the link and key in your personal information when you received an email from a bank that you have never opened an account. Besides, a phishing scam always has a lot of words misspelled because sometimes the scammers operate a phishing with a second language and poor grammar. So you can realize it is a phishing if you look at the message carefully. Another way to prevent is examine the link provide to see whether does it really go where it appears to go. For instance, the scammer will tell you that you can access to the government’s top secret database at www.topsecretxxx.gov but if you click the link you will find that you have been entered to another web site.

Successful of Ebay

Ebay is one of the success e-commerce in online trading. It is a software program that allowed people to list various interest and various degrees of item in one spot. It allowed people to be able to look at what is available for sale and bid on and buy those items.

Besides that, Ebay allows people to approach with some very lovely and special childhood memories. For instance such as collecting baseball cards to toy soldiers to Barbie dolls to doll houses and so on. It allows people to make that connection and relive a lot of those very vivid and very fond memories that they have from an earlier period of time. Another factor to consider which lead to the successful of Ebay is making people feel comfortable and enjoy the experience of the shopping bazaar. They enjoy the hunt and looking around for merchandise through online shopping. Likewise, the buyers also enjoy the competition of the bidding process since everybody like to bargain.

Subsequently, the environment of trust and safety also one of the factor that make Ebay become so successful. It creates an environment of trust and safety that will allow the users to come back over again and over again. This will enable the tyro online shopper can come to that particular site and feel comfortable shopping there. Thus they can get a good price and a bargain and getting the merchandise that they want.

What Can E-commerce do?

E-commerce is becoming more and more popular. Businesses are all trying to get their products online. More and more consumers shift themselves to online trading. Why are these happening?! Below are some points regarding this issue.


1st: Reduce cycle time
By having an e-commerce website, business can operate 24 hours. This can reduce unnecessary mailings and phone calls from customers and to suppliers. Besides, by eliminating middle man, businesses now can sell directly to their customers. This can reduce both the transportation time in between producer, middle man and consumers, and also the profit margin of a particular product! Workflow automation can eliminate the traditional way of order processing which consumed a lot of time. Nowadays, shipping, stock level, stock site, and payment verification are all done automatically in real time!

2nd: Improve employees’ empowerment
Employees who are working with e-commerce technology are normally self-managed. They have the authority to made decisions as they do not have a direct superior supervising them. Moreover, some employees even have the permission to maintain or setting up a creative website for the company. Besides, companies also empowered their workers to response to customers’ enquiries (email) without having to report to their manager. With the database, intranet and extranet, employees have more authority to access to corporate information as compare to those old days.

3rd: Facilitate customer support
With an e-commerce website, companies can now provide their customers a more advance customer support system. For example, most corporate websites provide online FAQ (frequent asked questions) section as a self-help customer support. If the customer cannot find his answer in the FAQ, he can also send an email to the contact link that is posted on the website. Normally these emails will be answered in a short period. Besides, some websites will also have their companies’ hotline posted on their websites. Customers may call the hotline and be served by the operator.