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In an effort to fight fraud and remain on the cutting edge of technology, Capital One unveiled virtual credit cards. By using its Eno texting chatbot, online shoppers can receive a fresh credit card number from Eno for online purchases. They can then use that number for any subsequent visits to that store.
Will It Be a Hassle?
While consumers are rightfully concerned about warding off fraud attempts, they also want their online shopping experiences to be convenient. Consumers might be happy to know when they do return for future shopping visits to their favorite online stores, Eno can fill in their billing info and virtual credit card number.
The new number is linked to the customer’s accounts so it will work just like a real credit card would. But the genius part is that with this technology consumers can have different credit card numbers for each store they use.
It can be handy for fraud prevention because if there is a data breach at one retailer, their real credit card number won’t be exposed. The hackers will only be able to access the Eno-generated number that only works at one store. That can potentially protect consumers from multiple fraud charges.
Right now, only credit cards work with the Eno plugin – although Capital One has expressed an interest in using it with debit cards as well.
How to Scan Your Accounts for Fraud
Although virtual credit cards might help cut down on fraud, consumers should keep being vigilant. The best way to protect their accounts is by being careful and watching for red flags.
Pay close attention to credit card statements each month to see if there are any unknown charges. Consumers who spot an unrecognizable charge should call their credit card company right away. If consumers do that, they will likely be protected since most credit card companies offer zero liability to their customers.
And even if the credit card company doesn’t give a consumer zero liability, they can’t pass much of the charge onto consumers. The most federal law allows a company to pass on to consumers when it comes to fraudulent charges is $50.
To make sure the damage is contained to one single credit card, consumers might want to ask for a copy of their credit report. They should scan that report carefully for any accounts that aren’t familiar and pay special attention to any new accounts. If consumers do find any other accounts that are suspicious, they should contact that company to let them know the account is phony.
Author: Mike Brown
In his role at LendEDU, Mike uses data, usually from surveys and publicly-available resources, to identify emerging personal finance trends and tell unique stories. Mike’s work, featured in major outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions.