Is Your Credit Card At Risk When Shopping Online?

Users of a cosmetics company's website may have had their card details compromised during a three-month period where it was repeatedly hacked, the company has revealed.

So is it safe to use a credit card when shopping online?

In this case, consumers who placed orders from the UK site between 4 October, 2010 and 20 January, 2011, have been warned that they are at risk from card fraud. The company outlined the problem in a statement some critics are saying comes too late.

In it, the company admitted that its website had been the victim of hackers and that some of its customers had already experience unauthorized use of their cards by fraudsters.

However, security experts don't recommend that consumers stop shopping online but that they should check their statements and talk to their banks if concerned.

The company revealed that in one 24-hours period its security monitoring showed that the site was repeatedly targeted by hackers seeking access.

Rather than expose customers to risk, the company decided to "completely retire" its current version of the website.

Because they operate on completely different systems, purchases made by phone, mail order or in person were not affected.

The company is replacing its old website with a version that only accepts payments made using PayPal.

Paypal can be more secure than other systems of payment although any credit card comparison will show that it does leave consumers left without some protection on purchases under law.

In the meantime, it has written a personalized message to the hackers responsible for the breach. In it the company says that while the hackers' talents are "formidable", it won't be offering them a job due to their questionable morals.

The company has not revealed how many of its customers' records were exposed during the attacks. Nor what exactly went wrong with the site. It is unusual for an ecommerce site experiencing security issues to permanently remove a site - they are usually only suspended for the time it takes to resolve the underlying security problems.

One computer security expert at the Sophos company wondered why consumer's credit card information wasn't encrypted in the first place - a measure which would have helped prevent any subsequent fraud.

The incident has proved to be highly embarrassing for the company but it could be worse for consumers.

They have been warned to check online banking for unusual transactions and to take the usual precautions when shopping online.

Even 0% balance transfer credit cards could be affected.

And what about the company concerned?

It's attempting to placate its customers by pointing out that it has also suffered. Its statement says that the employees are "so sorry for the worry and disruption that this has caused". It also thanks consumers for bearing with them "whilst we have shared being victims of this crime".

By: Justin Schamotta

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Justin Schamotta is a staff writer for a site which helps users to compare credit cards. The site also lists the UK's instant decision credit cards.