Ask Slashdot: How Safe, Really, Is Paying For Things Online?

An anonymous reader writes: Due to the rash of intrusions into electronic payment systems lately, I've decided to go back to paying cash for everyday purchases, groceries, fuel, and anything else I pay for in person (which also has the positive effect of making balacing my checkbook every month that much easier). The question I have is: For the monthly bills it's just not practical to pay in person (utilities, for instance), how safe are those?

Five minutes of research is telling me that mailing paper checks isn't any more secure than online electronic payments and in fact may be even less secure, but short of literally showing up at the electric company, phone company, ISP, and so on, and paying them cash in person, I can't see any other way to pay them. So how safe is it right now, honestly?
I'm always interested in how Slashdot readers secure their own personal finances -- but how high is the danger that a remote malefactor will hijack and then drain your bank account? Leave your best answers in the comments. How safe, really, is paying for things online?

Comments

My debit card got around...

[__aaclcg7560]

A teenager in London got a hold off my debit card number, ordered makeup and bling from a small company in Texas, used a San Francisco storage facility for the billing address, and her actual street address for shipping. The transactions didn't get far as the safeguards came into play with the credit union on my end and PayPal on the vendor's end. I even filed a complaint with London PD. The credit union issued a new debit card and that was that.

Re:its not

[MachDelta]

3. Cash for in-person transactions.

Unfortunately, I find that this is steadily becoming more of a hassle. I tried to pay for something with cash at Best Buy recently, and the poor young teller looked at me like I had just asked her what color her underwear was. Instead, I had to go to customer service to pay with cash like some kind of paleontology museum escapee... which was fine with me because the girl working at customer service was downright gorgeous. But next time when Bill the balding floor manager is on shift, then it's going to be an inconvenience.

Many banks offer credit card temp numbers

[perpenso]

ApplePay FTW. One-shot accounts work for me.

Nothing against ApplePay, I occasionally use it. However many banks allow you to create temporary account numbers linked to your real number. In addition to letting you set the max amount chargeable and expiration date for this number the number may also lock to the first vendor to charge it. So if that vendor gets hacked a second entity will be denied if they attempt to use the temporary number.

Re: old movie

[Gay Boner Sex]

Or do the obvious.

First many banks pay to open accounts so open an account at a bank that is paying those rewards, Every month simply transfer enough to pay your bills to your new PAY OUT ACCOUNTS. For example you can have an account just to pay your electric bill. Leave the required residual in the account so it is not closed. This way if the account is hijacked all you can lose is the electric bill payment. i also use PayPal a lot. So imagine that you set up ten accounts at banks offering sign on bonuses. Mine pay anywhere from $50 to $500 to open an account. Assuming your are all $50. reward accounts you will still quickly and easily earn $500 for a few minutes work. Meanwhile your funds earn interest in your regular account and you never, ever, pay bills from that account so you earn more interest. On most accounts with rewards you are free to change at the $90 day mark. So you can do this many times a year. Also you can earn referral fees for steering others to open accounts so work with a friend and refer each other frequently. Currently some people can actually earn a living simply opening and closing bank accounts.

Re:old movie

[rtb61]

The law is fairly clear, the onus of credit card purchases is upon the person who accepts the card. It is their legal responsibility to ensure the person entitled to use the credit card is the person attempting to use the card. How this is done is pretty hairy fairy ie they pretend to check properly but it is nearly impossible to do, unless cards come with pictures and thumb prints and the those items are secured. Now as that security is pretty much hairy fairy make belief, the credit card companies came up with the lie of identity theft, implying you the card holder as the victim, which is a lie, because the person who accepted the use of that card is the victim.

Properly legally speaking, in the event of any credit card dispute, the person who accepted the card must prove the authorised card holder used the card, where that fails, the person who accepted that card should be charged with fraud, until they can prove they were cheated ie they did not just attempt to wilfully defraud you and they were in fact defrauded. This of course puts a huge legal onus on the acceptors of credit cars, hence the PR=B$ lie about identity theft. They never ever cheat you, they defraud those who accept the false details and those who accepted the false details have committed a crime against you and should be charged with fraud until they can prove they were cheated.

So the credit card companies will lie to you face, will spread lies via main stream media, will endeavour to cheat you (keep in mind they hold the money from the claimant and you, whilst the collect interest), so the major financial institutions can not be trusted. Cash is pretty much the safest, apart from one thing, use to much and meth addicted law enforcers might kick down your door and empty their pistols into their chest because too much cash, means 'er' maybe drug dealer but anyone steal all the cash anyhow and if they are dead they wont complain.

Cash is still king in Japan though, so safest on the planet is cash in Japan. Technically least safe is cash in the US (raid and being shot risk factor), weird huh ;D.