Did you know that it’s relatively easy to find a valid credit card number on the Internet?  Even yours?  That’s a little scary, isn’t it?  Fortunately, there are a number of ways you can protect yourself and your identity.

How do people find a valid credit card number?

There are really two ways that a valid credit card number can be found through the Internet.  Now, before we tell you more about those three ways, bear in mind that we are NOT condoning the use of these strategies to find other people’s valid credit card numbers.  Our goal here is to inform you of the techniques used by others — and how you can protect yourself.

- Understanding the Credit Card Industry’s Algorithms: The first way that you can identify a valid credit card number is to apply what’s know as the “Luhn” algorithm.  An algorithm is a set of rules used to develop a series of numbers.  Credit card companies use a specific algorithm to develop numbers for credit cards.  You can learn more about the Luhn algorithm through this useful post at The Tao Of Making Money

- Hacking into the Transmissions and Financial Information of Unsuspecting Consumers: Many valid credit card numbers are captured through the nefarious practice of hacking in to the insecure sites of vendors as well as the desktops and e-mails of unsuspecting consumers.  In other words, whenever you type you credit card number into an online purchasing site or send it through an e-mail, it may be at risk.

It should be noted that banks and Internet search engine companies are working together to reduce the effectiveness of a third means, specifically to use a search engine.  Up until just a couple years ago, it was often possible to identify a valid credit card number by typing the first eight digits of any credit card into any search engine.  Because credit card algorithms provide many consumers with the same first eight digits, this practice would generate information on a number of credit cards from credit card companies.

How to Protect Yourself

Given the ease with which some are able to access valid credit card numbers, the savvy consumer will take steps to protect their hard-earned credit lines.  Following are some ideas:

Buy Through Secure Sites: Whenever making a purchase on the internet, you would do well to purchase only through secure sites.  This means that the vendors have taken extra steps to encrypt any transmissions of credit card numbers through the site.  You can tell a site is secure if the “http” code at the beginning of the web address includes an “s”, as in “https://

Protect Your Three Digit Credit Card Code: You may have noticed in recent years that most online vendors are now asking for the three digit code on the back of your card in addition to the tradition 16 digit code on the front of the card.  Use of this code adds an extra step to the credit card validation process — and may just slow down unauthorized use of your card.

Monitor Your Credit Card Charges: Finally, be sure to keep an eye on the charges being posted to your account.  If possible, it’s best to log in to your issuer’s website to check in between paper statements to catch any unauthorized spending early.

Remember — while it’s great to have your own valid credit card number, you certainly do not want others to get hold of it.  Not only will you be liable for a small portion of anything they have charged on the card, but you will also have to cancel your card and get a new one.  Understanding how these numbers become available as well as how to protect yourself will go a long way toward reducing credit card fraud.